Sasken Communication

We recommend a buy in Sasken Communication Technologies from a short-term trading perspective. This stock witnessed buying interest in line with the benchmark indices and jumped almost 13 per cent accompanied with good volume on July 14. It broke out of the symmetric triangle pattern (a continuation pattern), which was in formation since early June. The stock has been on an intermediate-term uptrend from its March low of Rs 41 and the uptrend-line is intact. In mid May, the stock conclusively broke through its 200-day moving average and is trading way above 200- and 50-day moving averages. The daily relative strength index has entered the bullish zone and the weekly RSI is already featuring in this zone. Taking into consideration the break-out of the symmetric triangle pattern, the short-term outlook appears to be positive for the stock. We expect it to move up until it hits our price target of Rs 128. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 109.

via Business Line