Investors with a short-term perspective can buy the stock of Datamatics Global Services at current levels. Since the stock took support at ₹28 in March 2020, it has been on an intermediate-term uptrend, forming higher peaks and higher troughs.

In November 2020, the stock took support at ₹66 and continued to trend upwards. It has been on a medium-term uptrend since then. However, the stock met with a resistance at ₹131 this January and had been on a sideways movement in a narrow band between ₹110 and ₹120 over the past two months.

On Tuesday, it jumped 10.5 per cent accompanied by extraordinary volume, and broke out of the upper boundary of the sideways movement at ₹120. This rally has strengthened the medium-term uptrend. The stock has also breached the 21- and 50-day moving averages, and trades well above them.

The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI continues to feature in the bullish zone. Further, the daily and the weekly price rate of change indicators hover in the positive terrain, implying buying interest.

The short-term outlook is bullish for the stock. It has the potential to trend upwards and reach the price targets of ₹130 and ₹133. Traders can buy the stock with a stop-loss at ₹121.5.

The recommendations are based on technical analysis. There is risk of loss in trading

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