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Investors with a short-term perspective can buy the stock of Sasken Technologies at current levels. The stock found support at around ₹470 in early August, after a sharp fall in the month of July this year. Moving sideways, the stock took support at ₹470 in late August and was range-bound between ₹470 and ₹530 for more than one-and-a-half month.
On Tuesday, the stock jumped 6.4 per cent accompanied by good volume, breaking above the key resistance as well as the upper boundary of the sideways range at ₹530. With the recent rally, the stock appears to have changed direction backed by positive divergence in both daily as well as weekly relative strength index.
The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is on the brink of entering the neutral region from the bearish zone. Moreover, the daily price rate of change indicator features in the positive territory implying buying interest.
The short-term outlook is bullish for the stock. It can extend the up-move and reach the price targets of ₹564 and ₹575 levels in the short term. Traders can buy the stock with a stop-loss at ₹530.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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