Comments
The stock of KPIT Technologies fell 3.6 per cent on Monday and closed below its 21-day moving average. Following a short-term uptrend, the stock encountered a significant resistance at ₹266 in early May this year. The stock tested this resistance last week and failed to move beyond this level.
Triggered by negative divergence in the daily relative strength index and price rate of change, the stock reversed direction and fell sharply on Monday. The short-term uptrend appears to have come to a halt and the stock is in a declining mode. However, the long-term uptrend that has been in place from the August 2017 low of ₹104 continues to be in place. The daily RSI has entered the neutral region from the bullish zone and the weekly RSI is correcting from the overbought territory.
The daily price rate of change indicator is on the brink of entering the negative terrain from the positive terrain. There has been a decrease in volume over the past two weeks. Taking a contrarian view, the short-term outlook is bearish for the stock.
Investors or traders with a short-term view can sell the stock at current levels. The stock can extend its down-move and hit the price targets of ₹241 and ₹236 in the coming trading sessions. Stop-loss can be placed at ₹257 levels.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.