Chart Check: Over 20% rally in 3 months! This technology company likely to surpass 700 levels

Birlasoft Ltd, part of the technology sector, has rallied by more than 20% to hit a fresh record high in December 2023 and chart patterns suggest that the rally may not be over yet.

Short-term traders can look to buy the stock now for a possible target above 700 levels in the next 3-4 weeks, suggest experts.

The stock rose from Rs 518 as on 8th September 2023 to Rs 657 recorded on 8th December 2023 which translates into an upside of over 26% in 3 months. Tracking the momentum, the stock hit a fresh record high of Rs 666.95 on 8th December 2023.


The stock has risen more than 4% in a week, and over 13% in a month.

The recent momentum helped the stock to break out from a consolidation pattern on the daily scale which has opened room for the stock to head higher.

The recent price action has pushed the stock in an overbought zone; hence, some profit booking or consolidation could be on the cards. Dips, if any, can be used as a buying opportunity as long as the stock holds above 625 levels.

In terms of price action, the stock is trading well above most of the long-term and short-term moving averages such as 5,10,30,50,100 and 200-DMA which is a positive sign for the bulls.

“Birlasoft is in an overall uptrend and forming higher highs – higher lows on a monthly scale from the past seven months. On a weekly scale as well the structure is intact and support is gradually shifting higher,” Arpit Beriwal, Analyst, Equity Derivatives & Technicals, MOFSL, said.

“On the daily scale, the stock gave a consolidation breakout after thirteen sessions with the highest daily close. The stock is holding well above its 20-Days EMA and the momentum indicator Relative Strength Index (RSI) is inching higher which suggests momentum to continue in coming sessions,” he said.

The stock has been outperformer within the IT midcap space. “Thus looking at the overall chart structure we are recommending to buy the stock with keeping stop loss below 625 levels on a closing basis for a target towards 715 zones,” recommended Beriwal.

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(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)