Sasken Communication Technologies

We recommend a buy in Sasken Communication Technologies stock from a short-term perspective. It is evident from the charts of the stock that following a medium-term downtrend from Rs 184 to Rs 127 between August and early November, it found support in the range of Rs 130 and Rs 140 last week. Subsequently the stock bounced up resuming its intermediate-term uptrend that has been in place since March low of Rs 41.50. The stock conclusively breached its medium-term downtrendline as well as 50-day moving average recently and continued to rally by gaining 7 per cent on December 3. We notice that there is an increase in volume over the past two trading sessions. The daily and weekly relative strength indices have entered into the bullish zone from the neutral region. Besides, the daily moving average convergence and divergence indicator has signalled a buy and is on the brink of entering in to the positive territory. Our short-term outlook on the stock is bullish. We anticipate it to move upward until it hits our price target of Rs 184 in the approaching trading sessions. Trader with a short-term horizon can buy the stock, while maintaining a stop-loss at Rs 158.

via BL