As Nifty IT shines on July 28, this mid-cap IT stock sees strong buying interest! Do you own it?

As Nifty IT shines on July 28, this mid-cap IT stock sees strong buying interest! Do you own it?

Indian Market
by 5paisa Research Team Last Updated: 2022-07-28T12:51:18+05:30

Mindtree has surged over 5% as mid-cap IT stocks become a hot topic on July 28.

With the Indian indices rallying due to positive global cues, the IT stocks have seen strong demand from cheered-up investors. The stock of Mindtree is one of the buzzing IT stocks on Thursday and has soared over 5%. After correcting over 40% from its lifetime high, the stock had become quite oversold and was below all its key moving averages. Interestingly, the stock consolidated in a range for nearly two months before registering a strong breakout. It has crossed above its prior swing high level of Rs 3236 with heavy volume. The volume is found to be greater than the 10-day and 30-day average volume, which justifies strong buying interest among the investors. Currently, the stock is above 20-DMA and 50-DMA and is heading towards 100-DMA.

Talking about the technical parameters, the daily 14-period RSI (64.44) is above its prior swing high and shows strong strength in the stock. The MACD histogram is positive and demonstrates a good upside. The OBV is improving and indicates increasing strength from the volume's point of view. The +DMI is well above -DMI. Interestingly, the elder impulse system has charted consecutive bullish candles, something that wasn't seen in the last few days. Moreover, the TSI and KST indicators also show improvement. Overall, the stock has become technically bullish.

As the sentiments have improved, you can consider buying this stock with the target level of Rs 3600, followed by Rs 3850 in the medium term. However, a fall below Rs 3000 can induce weakness in the stock. It provides a good swing trading opportunity and traders mustn't miss out on this stock.

Mindtree Limited is an IT consulting company that delivers business solutions through global software development. With a market capitalisation of about Rs 50,000 crore, it is one of the strong growing IT companies and quite competitive amongst its peers.

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