Here’s why KPIT Technologies can be the next big thing in the IT sector!
KPITTECH has jumped over 20% in the past one month.
Shares of KPIT Technologies have soared over 3% during the initial hours of Tuesday’s trading session despite weakness persisting in the market. It is currently one of the top gainers in its sector and has outperformed its peers in the medium term. The Rs 23,000 crore market cap company recently announced strong quarterly earnings which triggered fresh buying interest in the stock.
Robust Quarterly Performance
In Q3FY23, the company reported a 47% YoY jump in revenue to Rs 917 crore while net profit grew 43% YoY to Rs 100.49 crore from Rs 70.01 crore in the corresponding quarter of the previous fiscal year. The management expects to beat its FY23 guidance and is of the view that overall growth can be more than 33% with more than 24% organic growth. The stock has since then rallied over 20% in the past one month.
Technical Analysis
Apart from the positive fundamental numbers, the stock is technically very strong. It has registered a strong price breakout from its 55-week cup and handle pattern with massive volumes. The stock has been taking support from its 20-DMA and has seen fresh buying interest on Tuesday. It trades above all its key short and long-term moving averages and satisfies Guppy’s GMMA criteria.
Interestingly, the 14-period daily RSI (60.96) has entered bullish territory and shows strong strength in the stock. The OBV is at its peak and shows good buying activity. The Elder Impulse system indicates a fresh buy, while the Relative Strength (RS) is above 0 and shows relative outperformance against the broader market. The stock is currently about 33% above its 200-DMA and about 12% above its 50-DMA. In a nutshell, with such a bullish technical setup and strong fundamentals, the stock is expected to scale higher levels in times to come.
Stock price movement
The medium-term resistance for the stock lies at Rs 900 levels, followed by Rs 1000 levels. Meanwhile, support is placed at Rs 750 levels. Traders are requested to keep a close eye on this stock in upcoming trading sessions.
Share Market Today
| Indices Name | Price | Price Change (% change) |
|---|---|---|
| S&P ASX 200 | 7034.20 | -9 (-0.13%) |
| CAC 40 | 7282.58 | 40.43 (0.56%) |
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| Dow Jones | 35430.42 | 13.44 (0.04%) |
| FTSE 100 | 7427.41 | -30.58 (-0.41%) |
| Hang Seng | 16974.77 | -391.45 (-2.25%) |
| US Tech 100 | 14291.27 | 30.61 (0.21%) |
| Nikkei 225 | 33321.22 | -87.17 (-0.26%) |
| S&P 500 | 4550.58 | -4.31 (-0.09%) |
| Gift Nifty | 20105.00 | 104 (0.52%) |
| Shanghai Composite | 3021.69 | -16.86 (-0.55%) |
| Taiwan Weighted | 17370.56 | 29.31 (0.17%) |
| US 30 | 35529.00 | 9.5 (0.03%) |
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