HDFC Securities sees up to 20% upside in this IT stock in 3 months

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Birlasoft shares have remained under consolidation phase in first one and half month this year. However, the IT stock is showcasing strong rebound from its recent lows around 380 apiece levels. In last one and half month, Birlasoft share price has appreciated up to 470 per share levels, logging around 25 per cent jump in this period. 

However, HDFC Securities is still bullish on the IT stock and sees 520 as its immediate to short term target whereas it sees this stock climbing up to 570 per share levels in next one quarter, around 20 per cent higher from its current price of 470 per share.

On reason for being bullish on Birlasoft scrip, HDFC Securities report says that Birlasoft share has found strong support at 380 apiece levels in its recent consolidation phase. After hitting its lows in February 2022, Birlasoft share price has bounced back strongly and reversed its recent short term downtrend.

“A new uptrend was confirmed when the stock took out the previous swing high of 470 on the back of healthy volumes,” the brokerage report said.

On reasons for being bullish on Birlasoft shares; HDFC Securities further added, “Technical indicators are giving positive signals as the stock is trading above the 20 and 50 day SMA. We also observe that the Relative Strength Comparative indicator is moving higher, indicating the stock is outperforming the Nifty index.”

On its suggestion to positional investors in regard to Birlasoft shares; the brokerage report said, “With the intermediate technical setup too looking positive, we believe the stock has the potential to move higher in the coming weeks and therefore recommend a buy.”

HDFC Securities report said that one should buy the stock in 465 to 480 range maintaining stop loss at 440. In near short term or say one month, it may go up to 520 whereas in bulls’ case, Birlasoft share price may climb up to 570 per share levels, HDFC Securities report claims.

Birlasoft share price has appreciated to the tune of 75 per cent in last one month whereas it has dipped near 17 per cent in year-to-date (YTD) time.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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