KPIT Tech saw a respectable increase following its breakout above the Rs 1,280 mark. The stocks have near-term support at about Rs. 1,420, and the next near-term target is visible at about Rs. 1,680-1700.
OVERVIEW
- Due to profit booking, Indian indices ended the day marginally lower on Monday.
- KPIT Tech has a ‘hold’ rating from a Prabhudas Lilladher analyst.
- Bullish on blue-chip companies like Wipro and Coal India is the analyst.
On Monday, domestic indices continued to decline into the second session due to profit-booking in some sectors and a dearth of directional cues. The BSE Sensex finished at 65,655.15, down 139.58 points, or 0.21 percent. The NSE Nifty closed the day at 19,694 after losing 37.80 points, or 0.19 percent. Coal India Ltd., Wipro Ltd., and KPIT Technologies Ltd. are three stocks that are probably going to stay in the spotlight today. Before Tuesday’s trading session, Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, had the following to say about these stocks:
Wipro | Buy | Stop Loss: Rs 388 | Target Price: Rs 422
As the stock moved past the intersection of the 200-period moving average and the 50-period moving average at Rs 397 to strengthen the bias, Wipro bottomed out close to the Rs 378 level and indicated a respectable pullback. It’s expected that the counter will rise even more in the upcoming days. Additionally, the RSI recovered well from the oversold area and is now in a favorable position. Keeping the stop loss close to the Rs 388–390 range, one can hold the stock for the short-term goal of Rs 422.
KPIT Technologies | Hold | Stop Loss: Rs 1,420 | Target Price: Rs 1,680-1,700
KPIT Tech saw a respectable increase following its breakout above the Rs 1,280 zone. The robust bias remains intact, indicating additional upside potential for the stock in the upcoming days. The zone around Rs 1,420 would be the near-term support; below that, the bias may become a little shaky. The next short-term objective is visible at approximately Rs 1,680-1700 levels on the upside. If the trend continues to strengthen, levels between Rs 1,860 and Rs 1,880 should be the next objective.
Coal India | Buy cautiously; target price between Rs. 395 and Rs. 400; stop loss at Rs. 305
Over the past three months, Coal India has experienced significant growth, rising from Rs 230 to a peak of Rs 359. At this point, there was some profit booking and resistance on the scrip. Rs 328 would be the short-term support level. The second wave of momentum has the potential to drive the stock up to higher targets in the Rs 395–400 range after some cooling off. The bias could only be mitigated by a clear break below the crucial 50 EMA level of the Rs 305 zone.
