Long-term investors can buy the shares of Birlasoft (₹307.40) at the current levels. The downtrend that has been in place since January 2022 seems to have found a bottom. The stock made a low of ₹250.35 in March this year. After consolidating above ₹250 for a few weeks, the stock has started to move up.
This up move has gathered momentum over the last three weeks. Importantly, this new leg of up move has begun from a very crucial support around ₹250, where the 61.8 per cent Fibonacci retracement, 200-week moving average and a trendline supports are poised. All these factors strengthen the case for a trend reversal.
We expect the share price to rise to ₹360-380 – an intermediate resistance zone, over the next one-two quarters. Birlasoft share price has potential to target ₹450-500 and even ₹550 over the next one-two years.
Investors can buy now. Accumulate on dips at ₹275 and ₹255. Keep the stop-loss at ₹195. Revise the stop-loss up to ₹315 when the stock price reaches ₹360. Move the stop-loss further up to ₹390 when Birlasoft share price touches ₹440. Exit the stock at ₹490. This bullish view will go wrong if the stock price declines below the ₹220-200 support zone. But that looks unlikely at the moment.