Nandish Shah
After forming multiple bottoms around Rs 350 odd levels during last month, Nucleus Software reversed northwards to close above its 5 and 20-DMA with higher volumes.
The stock price has also given a bullish breakout on the daily chart on Monday by closing above the crucial resistance of Rs 380 levels to close at one month high.
The momentum indictors and oscillators like RSI and MACD are showing strength in the stock for the short to medium term.
The midcap technology as a sector is looking good for the short-term on the charts. The short-term resistance is seen around the Rs 420 level where the 200-day moving average is placed. Therefore, we recommend buying Nucleus for the upside target of Rs 420, keeping a stop loss placed at Rs 370.
Disclaimer: The author is a Technical & Derivatives Analyst at HDFC Securities. 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.
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