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Investors with a short-term perspective can buy the stock of Persistent Systems at current levels.
In the current market volatility and down trend, IT stocks could provide shield to the portfolio as a defensive sector. The stock jumped 4.7 per cent accompanied by above average volume breaking above a key long-term resistance at ₹550 on Thursday.
After registering a multi-year low at ₹472 in late July, the stock began to trend upwards from the oversold territory. Since then, the stock has been in a short-term uptrend. While trending up, the stock has decisively breached a key resistance at ₹550 and also the 21-day moving average recently, showing signs of bullish momentum.
The daily relative strength index is on the brink of entering the bullish zone from the neutral region and the weekly RSI has entered the neutral region from the bearish zone. Besides, the daily price rate of change indicator features in the positive terrain implying buying interest.
The short-term outlook is bullish. The stock’s short-term rally can continue and reach the price targets of ₹593 and ₹604 in the upcoming sessions.
Traders with a short-term view can buy with a stop-loss at ₹557.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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