Apr 25 2024, 09:08
Stock Radar: LTIMindtree showing signs of bottoming out; time to buy?
Short-term traders with high-risk profiles can look to buy the stock now for a possible target of Rs 5,000- 5,200 in the next few weeks, suggested experts.
The IT stock hit a 52-week high of Rs 6,442 on January 5, 2024, but failed to hold the momentum. It closed at Rs 4,721 on April 23, 2024, which translates into a fall of over 26%. It has remained flat from a 3-6-month perspective, largely in line with the selling pressure seen in the IT index. The index has fallen over 7% in the last 3 months but rose a little over 10% in a 6-month time frame.
LTIMindtree, a part of the IT sector, has plunged over 26% from its recent high but has gained support at the lower end of a rising trendline on the daily charts, which suggests a possibility of a technical bounce back.
Short-term traders with high-risk profiles can look to buy the stock now for a possible target of Rs 5,000-5,200 in the next few weeks, suggested experts.
The IT stock hit a 52-week high of Rs 6,442 on January 5, 2024, but failed to hold the momentum. It closed at Rs 4,721 on April 23, 2024, which translates into a fall of over 26%. It has remained flat from a 3-6-month perspective, largely in line with the selling pressure seen in the IT index. The index has fallen over 7% in the last 3 months but rose a little over 10% in a 6-month time frame.
LTIMindtree breached its major moving averages on the daily charts but took support above 4,600 levels, which also coincides with the lower end of the rising trendline.
The trendline was formed by connecting the lows of May 2022, April 2023 and April 2024. In terms of price action, the stock is trading above 5-DMA but below 10,20,30,50,100 and 200-DMA on the daily charts.
"LTIMindtree stock has witnessed a decent erosion from the peak zone of 6,442 levels with currently showing signs of bottoming out near the long-term trend line support of 4,600 levels," said Vaishali Parekh, vice- president - technical research at Prabhudas Lilladher.
"The RSI has flattened out after the slide and has an indication of a positive trend reversal to anticipate upward movement from current levels," she said.
"With the bias indicating slight improvement, we suggest accumulating the stock for the upside targets of 5,000-5,200 levels in the coming days/weeks with a stop loss of 4,550," recommended Parekh.
source: et
Nov 30 2024, 14:56