3i Infotech

We recommend a buy in 3i Infotech stock from a short-term perspective. It is apparent from the charts of the stock that since March low of Rs 25 the stock has been trending upwards. However, the stock encountered resistance around Rs 100 in early October and was declining till late November. A medium-term support at around Rs 77 arrested the stock's decline. Subsequently, it resumed the intermediate-term uptrend and breached 21- and 50-day moving average by surging 7 per cent on December 22. This upmove persists reinforcing the uptrend. We observe that there is an increase in volumes over the past two trading sessions. The daily relative strength index has entered the bullish zone from the neutral region and weekly RSI is on the brink of entering this zone. Besides, the daily moving average convergence and divergence indicator have indicated a buy and also entered positive territory. We are bullish on the stock from a short-term horizon. We anticipate its rally to continue until it hits our short-term price target of Rs 102. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 88.

via BL