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Investors with a short-term perspective can buy the stock of NIIT at current levels. Since the August 2013 low of ₹15, the stock has been on a long-term uptrend. Following a period of short-term sideways movements, the stock found support at ₹44 in late October 2014 and bounced up sharply, breaching its 21- and 50-day moving averages.
The stock thereafter moved in a very narrow band forming a pennant pattern, which signifies continuation. On Tuesday, the stock broke out of this pattern by gaining 6.4 per cent accompanied by extraordinary volumes. The stock has breached an immediate resistance at ₹52. It is hovering well above its 21- and 50-day moving averages.
The price rate of change indicators are hovering in the positive terrain signifying buying interest. The short-term outlook is bullish for NIIT. Targets are ₹56.5 and ₹58. Buy the stock with a stop-loss at ₹53.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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