KPIT Technologies gained strength after initial volatility on May 24, and extended as the day progressed to hit an all-time high of Rs 969.20 despite correction and consolidation in the broader markets.
The stock has formed long bullish candlestick pattern on the daily charts with decent volumes and has been trading above all key moving averages (21, 50, 100 and 200-day EMA - exponential moving average), indicating potential upside going ahead.
Also, KPIT Technologies has seen Ascending Triangle pattern breakout as well as breakout of resistance trendline adjoining multiple touchpoints, which is a positive sign.
Hence, generally there can be a possibility that the stock can give a target of triangle width, which is around Rs 200 from current levels to Rs 1,150, from around Rs 950 levels, experts said.
"The stock is in a stellar uptrend. The correction in the stock has taken place beautifully as the stock did not get into the formation of Lower Highs & Lower Low which illustrates the positive undertone in the prices," said Vidnyan Sawant, AVP - Technical Research at GEPL Capital.
He believes the recent breakout of Ascending Triangle indicates a continuation of the prior uptrend till Rs 1,150, where the level of Rs 890 can act as a strong support.
The stock was trading at Rs 966.85 on the NSE, up 4.4 percent at 14:50 hours IST.
Further, the stock also formed bullish candlestick pattern with long lower shadow on the monthly charts indicating buying at lower levels, with continuing higher highs formation for fifth consecutive month.
Foram Chheda, CMT, Technical Research Analyst and founder of ChartAnalytics.co.in also said KPIT Technologies' stock price has recently experienced a significant breakout above the resistance level of Rs 948. This breakout is further strengthened by a notable surge in trading volume, indicating a bullish sentiment.
She further said the Parabolic Stop and Reverse (PSAR) indicator also supports a buy move.
Additionally, the stock has been forming higher highs and higher lows consistently, confirming the presence of a bullish trend. Consequently, the current levels of Rs 960-965 present attractive buying opportunities. Traders are advised to place a stop-loss (SL) at Rs 934 and aim for an upside target of Rs 1,020, she advised.
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