This Large Cap IT Stock Is A Positional Call For Over 20% Gains In 3 Months

Time and again brokerage firm HDFC Securities has given a positional call based on technical analysis on the stock of Mphasis. Mphasis is a large cap IT scrip engaged in offering applications, business process outsourcing (BPO) and infrastructure services.

Buying range, time horizon, stop loss and target price

For the scrip, the suggested buying range is Rs. 2276.45-2287 while the target is placed at Rs. 2542/2650 and stop loss is Rs. 2099.

 

Technical observation on the stock as per the brokerage

Stock has formed a bull candle on weekly chart which indicates positive momentum.
Higher top and higher bottom formation has been witnessed on intraday chart.
RSI is placed with positive divergence which is bullish reversal.
Short term trend of the stock has turned up as it has witnessed a breakout of falling wedge.
Oscillators like MACD & KST are placed with positive signals.
Flat pattern correction has started from 3660 and ended at 2070 which is labeled as "a-b-c".
Considering the Technical evidences discussed above, we recommend buying the MPHASIS at 2276.45
and average at 2177, for the upside targets of 2542 - 2650, keeping a stop-loss at 2099.

Disclaimer

The stock recommendation is as given by the brokerage and investors should not construe it to be an investment advice into it.