Following the company's announcement of its merger with Mahindra Satyam, its stock price started to skyrocket on March 21.
For the week , the stock accelerated 21.5 per cent with extraordinary volumes.
This up move has breached the stock's 200-day moving average at around Rs 640 and is hovering well above it.
The stock is currently facing resistance at Rs 750, from which it has reversed lower in the past. Failure to surpass the resistance at Rs 750 will pull the stock down to Rs 670 and then to Rs 640 in the medium-term.
Nevertheless, strong weekly close above Rs 750 can push the stock higher to Rs 800 in the same timeframe.
Only an emphatic breakthrough of the significant long-term resistance at Rs 800 will reinforce upward momentum and will take the stock higher to Rs 890 or to Rs 930 in the long-term. Important support below Rs 640 is at Rs 590.
Advanta India (Rs 411.7)
The stock surged almost 19 per cent accompanied with excellent volumes last week. It is presently testing important resistance at Rs 400. The stock is hovering well above both its 50 and 200-day moving averages. The daily relative strength index is featuring in the bullish zone and the weekly RSI has just entered this zone from the neutral region. Likewise, the daily moving average convergence divergence indicator is hovering in the positive terrain and weekly indicator is entering in to this terrain implying upward momentum.
A decisive move above the resistance Rs 400 in the ensuing week will pave way for the stock to rally to Rs 450.
An emphatic breakthrough of Rs 450 level, which is a key long-term resistance, is required to strengthen the stock's medium-term uptrend and to lift it northwards to Rs 500.
Inability to surpass the Rs 450 level can pull the stock down to Rs 380 and then to Rs 320 in the medium-term.
A conclusive decline below Rs 320 will mitigate the stock's medium-term uptrend and drag it lower to Rs 270 in the intermediate-term.