Technical Check: Nearly 200% return in 2021! This IT company likely to cross 5000 in next 6 months
This IT stock with a market capitalization of about Rs 34,000 cr hit a fresh 52-week high of Rs 4753 on 17 December.
![Technical Check: Nearly 200% return in 2021! This IT company likely to cross 5000 in next 6 months Technical Check: Nearly 200% return in 2021! This IT company likely to cross 5000 in next 6 months](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_850x478/public/2021/12/22/170200-it-stock-in-indiareuters.jpg?itok=qAVmkNdC&c=c5af8c0f92ccc8e249257bf0f1cb18e8)
Persistent Systems Ltd rallied by over 190 per cent so far in 2021 compared to 20 per cent rise seen in the Nifty50, and the good news is that the momentum is not over yet.
See Zee Business Live TV Streaming Below:
This IT stock with a market capitalization of about Rs 34,000 cr hit a fresh 52-week high of Rs 4753 on 17 December. Most of the technical indicators are suggesting a potential move above Rs 5000-5600 in the stock in the next 6 months that translates into an upside of 26 per cent from Rs 4427 recorded on 20 December, suggest experts.
Persistent Systems is a trusted global solutions company, delivering digital business acceleration, enterprise modernization and next generation product engineering services.
In terms of shareholding, both foreign investors and mutual funds reduced stake in persistent systems for the quarter ended September, data showed.
Foreign Institutional Investors (FIIs) reduced holding sequentially from 19.44 per cent to 19.3 per cent for the quarter ended September. Mutual Funds also decreased holding sequentially from 26.34 per cent to 23.98 per cent for the quarter ended September, data from Trendlyne showed.
In terms of valuations, the stock is trading at a Price Earning (P/E) multiple of 57.90x, that is slightly above the industry P/E of 34.82x, and an Earnings Per Share (EPS) of 76.80.
Technically, the stock is trading well above its crucial short- and long-term moving averages of 30,50,100 and 200-Days Moving Average.
The stock price recently moved from 3430 (Sept 2021) to 4389(Oct 2021). Profit booking followed and the stock made a low of 3666 in October.
After a sharp dip, bulls managed to push the stock back towards a new high of 4442 in November 2021.
“After correcting from 4442 the stock made a higher bottom at 3739 in Nov 2021. The stock is trading in a rectangle pattern in the range of 3500/4600 since Oct 2021,” Bharat Gala, President - Technical Research, Ventura Securities Ltd, said.
“Recently the stock made a new high of 4753 accompanied by supportive volumes. KST, Aroon Up/Dn & ADX Indicator suggest a possible up move,” he added.
Gala further added that the possible targets are 5600. If the stock price corrects downwards the buy levels are (4513-4365)-4258-(4150). Stop Loss to be observed in the trade is 4100.
(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
![https://www.zeebiz.com/markets/stocks/photo-gallery-this-tata-group-stock-turned-every-rs-10000-of-investment-into-rs-11300-in-just-a-week-investors-richer-by-42722-crore-rupees-any-guesses-share-market-news-304023](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/26/307143-tradingpexels.jpg?itok=rw4R7EfH)
A Tata group stock just turned every Rs 10,000 of investment into Rs 11,300 in just a week, investors richer by Rs 42,722 crore; any guesses?
![https://www.zeebiz.com/markets/stocks/photo-gallery-large-cap-midcap-stocks-shares-to-buy-for-long-term-check-out-targets-nifty-sensex-303617](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/25/306716-stockks.jpg?itok=KJTrFUIK)
Stocks to buy for long term: Analysts suggest buying these 5 largecap, 4 midcap scrips; check out targets
![https://www.zeebiz.com/personal-finance/photo-gallery-nps-retirement-planning-budget-2024-nirmala-sitharaman-announcement-how-nps-rulebook-change-can-increase-corpus-income-and-monthly-pension-by-40-compound-return-303984](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/26/307102-indian-currency-pixabay-take.jpg?itok=kN21EW-9)
How your NPS retirement corpus and monthly pension can jump by 40% after this rule change; get details
![https://www.zeebiz.com/personal-finance/photo-gallery-senior-citizen-savings-scheme-scss-2024-interest-rate-calculator-post-office-how-to-get-inr-rs-50000-interest-retirement-planning-guaranteed-return-maturity-amount-small-savings-303930](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/26/307042-fd-interest-file.jpg?itok=45ZbBRWM)
How much investment do you need in this senior citizen scheme to get Rs 50,000 quarterly interest? Know here
10:29 AM IST