kpit technologies stock: Chart Check: Uptrend intact in this IT company that rose over 100% in a year post breakout

The stock with a market capitalisation of more than Rs 19,500 crore rallied from Rs 337 recorded on October 21, 2021, to Rs 711 as on October 21, 2022 which translates into an upside of more than 110% in the last one year.

The stock hit a 52-week high of Rs 800 on January 10, 2022, but it failed to hold on to the momentum. It bounced back after hitting a low of Rs 440 in May 2022, and Rs 450 in June.

After retesting the support twice in May and June, the stock witnessed a strong rally. It rose more than 6% in a week, 18% in a month, and more than 30% in the last 3 months.

Short-term traders who missed the rally can look at entering the stock on dips for a possible target of Rs 800 which is also its January 2022 high in the next 2 months, suggest experts.

On the price front, the stock is trading above crucial short- and long-term moving averages of 5, 10, 30, 50, 100 and 200-DMA which is a positive sign for the bulls.

The Relative Strength Index or the RSI is at 67.9. RSI below 30 is considered oversold and above 70 is considered overbought, Trendlyne data showed. MACD is above its Center Line, but below the signal line.

After heavy selling pressure seen in the IT sector index, it has now started to form a base, showing a pause in selling pressure.

“The index has started to find feet at the lower band of consolidation. Among the IT stocks, KPIT stock has been outperforming,” Kapil Shah, Technical Analyst, Emkay Global Financial Services and Trainer- FinLearn Academy, said.

The stock has formed a rounding pattern for more than 100 days followed by a breakout on the higher side.

“Stock has given a breakout after consolidation; it shows a bullish continuation sign. Stock is taking support at the mid-term moving average. The relative strength line has upward trajectory, implying strength in the stock,” he said.

“Momentum oscillator RSI has taken support from its base around the 50 level. MACD has positive crossover in the positive zone, indicating bullish continuation sign,” added Shah.

“Based on the rationale above, the stock offers a buying opportunity in the range of 695 to 675 range with a stop loss of 640 on closing basis. It has upside potential up to 800 levels in the next 2 months,” Shah recommended.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)