Birlasoft Ltd (BO:) is engaged in computer programming, consultancy, and related activities. The company provides software development and IT consulting to its clients in BFSI, life sciences and services, energy resources and utilities and manufacturing. The stock is trading at a 5.15% discount to its 52- week high level. The 52-week high and 52-week low range is Rs 458 – Rs 175.
One week time frame: (Chart 1)
On a weekly time frame, as we can see from the chart below that Birlasoft stock has made an Ascending Triangle pattern. A breakout will be confirmed when the share crosses Rs 440 level and stays above it. We anticipate seeing an upward move supported by an increase in volumes. The relative Strength Index (or RSI) line took support at a level of 50 and is now above 60. It indicates positive momentum on the stock. Long-term investors should enter once the stock crosses Rs 440 level and stays above it. They should maintain the stop loss at Rs 355 on a weekly closing basis.
One day time frame: (Chart 2)
On a daily time frame, Birlasoft share is trading in an Ascending Channel. You should also note that the scrip has taken able support on the 50-day EMA line. We expect the stock to further move higher aided by higher volumes. RSI is close to 60 and the Moving Average Convergence Divergence (or MACD) line has crossed the signal line from below. It denotes positive momentum on the scrip. Positional traders should enter when the stock crosses Rs 440 level and stays above it. They should keep a stop loss at Rs 397 on a daily closing basis.
We anticipate Birlasoft stock to maintain positive bias and move higher in the coming trading sessions. Short-term traders should enter at the current level by maintaining strict stop loss at Rs 418 on a daily closing basis.