"The stock can be bought at current level and on dips up to Rs 790 with a stop loss below Rs 760 and a target of Rs 910 levels," says Ashish Chaturmohta of Sanctum Wealth Management.
Persistent Systems touched a high of Rs 878 in the month of February and then declined to hit low of Rs 657 levels. The rally in the month of April has been good volumes indicating buying participation.
The price has retraced 61.8 percent Fibonacci of the whole decline and is now consolidating in a range of Rs 825 to Rs 760 odd levels for the last three weeks.
The stock has been finding support at its 21-day exponential moving average and has been holding above it which is a positive sign.
The weekly MACD has given a positive crossover with its average above neutral level of zero suggesting consolidation phase is over and the stock is likely to start an uptrend.
Thus, the stock can be bought at current level and on dips up to Rs 790 with a stop loss below Rs 760 and a target of Rs 910 levels.Disclaimer: The author is Head Technical and Derivatives, Sanctum Wealth Management. The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.