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Short-term traders can look to buy the stock for a target above Rs 3000 in the next 2-3 months, suggest experts.
The technology stock hit a fresh 52-week high of Rs 2835 on 19th February 2024. It has rallied from Rs 2325 as on 17th November 2023 to Rs 2779 recorded on 19th February 2024 which translates into an upside on 19.5%.
The stock bounced back from its multi-year support above 2500 levels. The stock witnessed a breakdown from 2500 levels in June 2022.
The stock failed to hold the momentum and drifted lower to test 1600 levels March-April 2023. The level also coincides with the 200-week Moving Average on the weekly charts.
The technology stock bounced back after retesting the 200-week moving average but faced resistance again around 2500 September 2023.The stock witnessed some consolidation and witnessed some price-wise correction on the weekly charts. The stock bounced back after retesting a 50-week moving average to climb above 2500 levels.The stock has been hovering around the 2500 market since December 2023 on the weekly charts. It witnessed a strong momentum last week. It rallied more than 6% in a week.
In terms of price action, the stock is now trading well above most of the crucial short- and long-term moving averages placed at 5,10,30,50,100 and 200-DMA on the daily charts.
![](https://img.etimg.com/photo/msid-42031747/et-logo.jpg)
The daily Relative Strength Index (RSI) is placed at 63.9. RSI below 30 is oversold and above 70 is considered overbought, Trendlyne data showed. The daily MACD is above its center and signal Line, this is a bullish indicator.
Mphasis currently achieves 52-week highs, signifying a robust and resilient market momentum. The stock exhibits a strong structural development, establishing higher highs and higher lows since March 2023.
“This consistent upward trajectory of Mphasis stock aligns with a classical uptrend, reflecting a robust price structure,” Vidnyan S. Sawant, Head of Research at GEPL Capital Ltd, said.
“The recent shift in polarity during the past week has been evident as former resistance levels from August 2022 and November 2023 now serve as support. This observation suggests a continuation of the prevailing trend in the market,” he said.
Mphasis maintains its position above both the 20-week and 50-week Exponential Moving Averages (EMA), reinforcing the bullish trend.
The Moving Average Convergence Divergence (MACD) signals a bullish crossover in the positive territory, emphasizing the trend’s strength driven by substantial momentum.
“The RSI study maintaining levels above 60 across higher time frames serves to reinforce positive momentum in the market,” highlights Sawant.
“There is an anticipation of further price ascent towards the 3316 mark. It is recommended to set a stop-loss at 2613, strictly based on a closing basis,” he recommended.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
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