Investors with a short-term perspective can buy the stock of Mindtree at current levels. Since registering a 52-week low at ₹652 in July this year, the stock has been in a sideways consolidation phase in a wide range between ₹670 and ₹750. In mid-November, the stock took support at around the lower boundary of ₹670 and began to trend upwards and has been in a short-term uptrend. Last week, the stock had decisively breached its 21- as well as 50-day moving averages while trending up. But it paused at the upper boundary testing it.
On Wednesday, the stock gained 2.4 per cent with good volume and has managed to marginally close above the upper boundary. The short-term outlook is positively biased. The daily relative strength index has re-entered the bullish zone from the neutral region and the weekly RSI hovers in the neutral region. Moreover, both the daily and the weekly price rate of change indicators are featuring in the positive terrain implying buying interest.
The stock has the potential to trend upwards and reach the price targets of ₹785 and ₹800 in the upcoming sessions. Traders can buy with a stop-loss at ₹740.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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