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Technical Observations

* The IT index after the last six weeks breather has resumed fresh up move in the last two weeks. The midcap IT stocks are witnessing strong momentum and resuming primary up trend

* The share price of Birla Soft has formed a higher base at the rising 100 days EMA and the rising demand line joining lows since September 2020 as can be seen in the adjacent chart

* In the daily chart it has formed a bullish double bottom at the support area and has witnessed a breakout above the same (| 246) signalling resumption of the primary up trend and provides fresh entry opportunity

* The stock has immediate support at | 230 levels as it is the 80% retracement of the current up move (| 224-251)

* The daily MACD has generated a buy signal moving above its nine periods average thus validates positive bias

* We expect the stock to continue with its current positive momentum and head towards | 268 levels as it the 80% retracement of the recent breather (| 285-223) placed around | 268 levels.

Buy Birla Soft Ltd @ 242.00-248.00 TGT 268.00 SL 230.00

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