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KPIT Technologies

Observation

* KPIT Tech has been outperformer in the IT stocks. The prices are breaking out of a 3 week consolidation with good volumes.

* In the recent market correction, KPIT corrected nearly 14% and took support at 451 which is placed near the 38.2% Fibonacci retracement level of the rise from 300-531 after which the stock witnessed a sharp bounce..

* On weekly charts stock has formed a bullish candle which has engulfed previous 2 weekly candles which is indicating a bullish sentiment.

* On the indicator front the MACD remains bullish and histogram is above zero level. The Bollinger bands are expanding which indicates higher volatility and chances of a trending move going forward.

* The ROC is also positive and is at the highest value in 2021 at 63 which is suggesting the bullish momentum to continue.

Inference & Expectations

* KPIT is breaking out from the recent consolidation.

* The technical parameters and the indicators mentioned above, point towards the possibility of increasing bullish momentum in the trend

* We expect this momentum to take the prices towards 633 (78.6% extension level of the rise from 300-531 projected from 451) followed by 682 (100% extension level of the rise from 300- 531 projected from 451)

* On the downside the 495 mark will act as a support zone. If this level is breached, our bullish view will be negated and we might see the prices move lower towards 455

* One can buy KPITTECH at current levels with a target of 633 and 682 with a strict stop loss of 495 on closing basis.

KPIT Technologies Ltd : LTP : 539.10 Target: ₹682 Stop Loss : 495

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