Price Breakout post sideways move: The stock has witnessed a sideways to neutral move over the last few weeks. Yesterday's price move indicates a price breakout along with excellent volumes. This can take the stock price higher in the coming few weeks. The short term charts also support this hypothesis.
Positive Divergence in Momentum Indicator: The medium/long term momentum (MACD) indicator has been exhibiting higher top and higher bottom formation for the last two months (refer chart). This is contrary to its stock price which has been showing a downward momentum. This indicates a positive divergence which is generally a precursor to a sustainable rally. This can lead to a trend change in the medium term.
Technical Commentary/ Observation: Financial Technologies has demonstrated a good appetite for buying at lower levels thus its downside appears limited. Price breakout coupled with the supporting strength from the momentum indicators and oscillators indicate higher prices in the near future. We recommend buying this stock from a three-four month time perspective at current levels with target of Rs 1000.
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