Top buzzing stock: Birlasoft Limited

resr 5paisa Research Team 15th December 2022 - 06:56 am
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The stock of Birlasoft is bullish and has soared nearly 5% on Tuesday.

Birlasoft Limited is a technology company engaged in computer programming, consultancy and related activities. With a market capitalization of about Rs 13500 crore, it is one of the strong growing IT companies. The stock is in limelight due to its strong performance today.

The stock of Birlasoft is bullish and has soared nearly 5% on Tuesday. On the technical chart, it has formed a strong bullish candle and is trading at a day’s high. Along with this, it has crossed above its prior swing high with heavier volume. It has given a breakout from its strong horizontal resistance of Rs 485 and continues to trade higher. After forming a base at the level of Rs 450, the stock bounced back sharply and gained about 10% in just three trading sessions. With today’s price action, it has also crossed above its 50-DMA. Thus, the price structure looks bullish.

The 14-period daily RSI has entered bullish territory and is placed at 65. Meanwhile, the AMCD line continues to trade above the signal line and zero line. Interestingly, the On Balance Volume (OBV) has crossed above its prior swing high and is pointing northward. This is a sign of strong strength from a volume perspective. Moreover, the stock trades above all the key short term and long term moving averages. Today, the stock has recorded above-average volume, which is greater than the 10-day, 30-day, and 50-day average volume, thus demonstrating strong trading activity.

In the past one month, the stock has generated over 12% returns and has outperformed the broader market and most of its peers. Considering its strong price structure and volume, bullish technical parameters and recent performance, the stock is expected to trade higher in coming days. Moreover, it presents an excellent opportunity for swing trading. It has the potential to test the levels of Rs 520, followed by Rs 530 in short to medium term. Traders can expect good gains and shouldn’t miss out on the opportunity.

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