Buy This Multibagger IT Stock For Further 18% Upside In 3 Months: HDFC Securities

Indian markets in line with Asian markets on escalating Ukraine-Russia tensions are down. At 1:20 pm, Nifty has slumped by 230 points, while Sensex is down by 948 points to 55,299. Broader markets are still faring better.

Amid such uncertainty, HDFC Securities based on technical analysis has come up with positional calls. The stock ideas are based on the market movements by examining historical data, like price and volume.

Buy KPIT Technologies for a target price of Rs. 670

KPIT Technologies has been signalled a 'Buy' for a target price of Rs. 670. At the current price of Rs. 567.75, this means a possible upside of 18.01%. The time horizon for the said target is 3 months. The brokerage further suggest maintaining stop loss of Rs. 525 per share.

About KPIT

The company is an independent software integration partner to global automotive leaders with focus primarily on automotive and mobility. The company has direct presence in countries including Germany, Americas, Japan, India, Korea, China. Further the company is the only embedded software company with deep domain expertise across CASE (Connected, Autonomous, Shared, Electrified) domains.

Technical observation:

During the recent correction, Stock price has taken support at 100 day EMA
➢ Primary trend of the stock is positive where it is trading above its 100 and 200 day EMA.
➢ RSI and MFI oscillators are placed above 40 and rising upwards, Indicating strength in the current uptrend
➢ Stock price has been taking support at 100 day EMA since last many months.
➢ Considering the Technical evidences discussed above, we recommend buying KPIT Tech at CMP of 566.9 and average at 542 for the upside targets of 612 and 670, keeping a stop-loss at 525

Disclaimer:

The stock has been picked from the brokerage report of HDFC Securities. Investing in equities poses a risk of financial losses, especially as we are seeing volatile markets now. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.