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The stock of Birlasoft Limited is a good candidate to buy for the short-term, given that it has witnessed a fresh breakout of the consolidation range.
Since registering a low of ₹46.7 in late March, the stock has been moving up gradually. The uptrend got accelerated in July when the scrip pierced through the psychological level of ₹100, turning the outlook positive. The stock price doubled since then and hit ₹200 in mid-September. That is when the bulls started to lose strength. However, there was no price correction and instead the stock went into consolidation phase. That is, it was oscillating between ₹175 and ₹210 until Monday.
Yesterday, bulls made a comeback and consequently the scrip broke out of the range and recorded a fresh 52-week high of ₹236.9 before ending the session at ₹232.8. This has increased the likelihood of the stock establishing another round of uptrend. Substantiating the positive bias, a considerable increase in volume can be seen during the breakout.
Hence, traders can buy the stock on dips with stop-loss at ₹215 for a target of ₹250.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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