Stock in focus: For NIIT it is high performance and expectations ahead!

NIIT Limited is a skills and talent development company that offers multi-disciplinary learning management and training delivery solutions to corporations, institutions and individuals.

The company has a market cap of Rs. 5,183 crore. The company is enjoying an increase in market share in the last five years from 28.52% to 41.48%. It has recorded higher than industry revenue growth and industry net income in past few years. This certainly shows that the company is on the right track with its business performance and is quite evident with its movement in the stock price.

The stock has performed exceptionally well by delivering returns of 92.83% YTD. On a YoY basis, the stock has gained 159% and has also gained 20.33% in three-months time. This shows that the stock is performing strongly for quite some time.

The stock, after touching the all-time high level on 24 September, was going through a correction phase and corrected as much as 27%. It then made a U-shaped recovery and is trading strongly since the past four trading sessions as it gained 16%. It reclaimed its all-time high levels with larger volumes and the volumes witnessed during the last few sessions were well above the volumes of the past few weeks. The stock is trading well above its key moving averages and RSI is going strong at 70. The positive directional movement (+DMI) crossed the -DMI a few trading sessions back and is currently above it. This shows strong strength and potential in the stock. Market participants are showing interest in this stock, as is evident from the above points.

Considering the performance NIIT has shown, we can expect the stock to continue its momentum on the higher side. Traders can expect some good returns for the short to medium term as the technical analysis validate our point.