The short-term outlook for the stock of KPIT Technologies is bullish. The stock has surged over 6 per cent on Wednesday. This has taken the stock well above the key resistance level of ₹700 which was capping the upside for more than two weeks. The recent bounce from the low of ₹680 has happened from a strong trend line support strengthens the bullish case for the stock.
The region between ₹700 and ₹695 will now act as a good support. Any intermediate dips can be limited to this support zone as fresh buyers can come into the market. KPIT Technologies can rally to ₹790-₹800 over the next couple of weeks. Traders can go long now. Accumulate on dips at ₹705. Keep the stop-loss at ₹690. Book profits at ₹785.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)