Technical Check: 200% rally in 2021! Uptrend intact, buy this midcap IT firm on dips

KPIT Technologies Ltd has been in an uptrend so far in 2021 outperforming other IT stocks by a wide margin. The stock rallied by about 200 per cent so far in the year compared to 29 per cent rally seen in the Nifty50, and 45 per cent in the S&P BSE IT index.

The company with a market capitalization of more than Rs 11,700 crore hit a fresh 52-week high of Rs 435.40 (intraday) on 12 November, and the uptrend remains intact.

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After consolidating in a narrow range from September to November, the stock has finally given a breakout this week and is all set to touch fresh 52-week highs.

The next target, which investors can look for is Rs 470 that translates into an upside of over 10 per cent from Rs 403 recorded on 11 November, suggest experts.

KPIT is a global technology company with software solutions that will help mobility leapfrog towards an autonomous, clean, smart, and connected future.

With 7000 automo believers across the globe, specializing in embedded software, AI and Digital solutions, KPIT enables customers to accelerate the implementation of next-generation mobility technologies.

Pricewise, the stock is in a long-term uptrend forming a higher top and higher bottom i.e. each new high after up move is higher than the previous high, and each new low after a correction is higher than the previous low.

“For the last 3 months, stock has been in a sideways range of 385 and 300 levels. It has been consolidating its gains and now formed a base for the next leg of the up move. Now the stock is showing signs of breakout on the upside,” Ashish Chaturmohta, Director, Equity Research at Sanctum Wealth, said.

“The last session has formed bullish candle with high volumes indicating buying participation in the stock. The moving average convergence and divergence line has moved above the neutral level of zero on the daily chart,” he said.

Chaturmohta further added that the stock can be bought at current levels and dips to 365 with stop loss of 345 for the target of 470 in the coming 6-9 months.

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)