KPIT Technologies hits a new high with a decisive breakout. What should you do?

KPIT Technologies

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26 Aug, 2025 12:21

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KPIT Technologies shares hit a new high of Rs 1,074 on May 31 despite a correction in the equity market. The stock formed a strong bullish candlestick pattern on the daily charts, with healthy volumes after a decisive breakout of Mother Candle, which can be seen as a consolidation breakout of the past three trading sessions.

The stock rallied more than 5 percent to end at a record closing high of Rs 1,063 after surpassing the Rs 1,000 mark on May 25 for the first time.

KPIT has been in an uptrend since June 20, 2022 barring intermittent correction and consolidation and has given a return of 134 percent in the period. Since July 2022, it has closed in a positive terrain in nine out of 11 months.

Given the strong chart structure, experts advise "holding" the stock for the long term and trailing the stop-loss on every upmove.

"KPIT Technologies has been in a secular uptrend since July last year when it crossed above the 200-DMA (daily moving average). From the level of Rs 540 until the new high of Rs 1,074, the stock has stayed in a strong secular uptrend," Milan Vaishnav, Founder and Technical Analyst, Gemstone Equity Research, said.

While the trend continues, any fresh entry with an objective of chasing the upmove should be avoided as it would come with an adverse risk-reward ratio, he said.

Investors holding the stock may continue to stay invested, as there are no signs of any potential trade reversal, however, they must keep trailing their stop-loss, Vaishnav said. It is advisable to stay invested with the stop-loss trailed to Rs 980 levels below which one must book profits, he said.

Foram Chheda, Technical Research Analyst and founder of ChartAnalytics, also favours setting a trailing stop-loss below Rs 995 to protect against any sudden downturn. From a long-term perspective, she said the trend remains bullish, suggesting holding onto the stock.

KPIT Technologies' price has experienced a strong upward movement since it broke out from the ascending triangle pattern at Rs 948. This bullish trend has been accompanied by a notable increase in trading volume, indicating a higher level of market participation and supporting the upward momentum.

For traders, it would be prudent to monitor the stock closely as it approaches Rs 1,100, as this could be a potential opportunity to secure partial profits, Foram said.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.