Todays Pick

Sonata Software Ltd (925): BUY

Gurumurthy K BL Research Bureau | Updated on September 22, 2021

 

The short-term outlook for the stock of Sonata Software Ltd is bullish. The stock has been in a strong uptrend since April last year. It had surged over 6 per cent on Wednesday breaking above the key near-term resistance level of ₹900. Immediate support is at ₹920. Next key supports are at ₹905 and ₹895. The stock is likely to sustain above ₹895 in the coming days.

There is room on the upside for the stock of Sonata Software to test the psychological level of ₹1,000 in the coming days. Traders with a short-term perspective can go long at current levels and then accumulate on dips at ₹905. Stop-loss can be placed at ₹890.

Trail the stop-loss to ₹945 as soon as the stock trades at ₹960. Move the stop-loss further up to ₹965 as soon as the stock touches ₹985. Book profits at ₹995.

Note that the level of ₹1,000 is a strong long-term trend resistance. As such, the chances are high for the stock to reverse lower from around ₹1,000 levels.

(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)

Published on September 23, 2021

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