The stock of Sasken Technologies gained 6.5 per cent with extraordinary volume on Tuesday, breaking above a key resistance at ₹1,000. It is well set for extending the uptrend over the short term. Investors with a short-term horizon can buy the stock at current levels. The stock has been in a long-term uptrend since it bottomed out from the March 2020 low at ₹335 levels. Medium as well as the short-term trend are up for the stock.
After encountering a key resistance at ₹1,000 in early April this year, the stock had been in a sideways movement forming an ascending triangle with horizontal resistance at ₹1,000. This recent up-move has conclusively broken out of the ascending trading pattern which is a continuation pattern. The stock trades well above the 21- and 50-day moving averages. 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. Short-term outlook is bullish.
The stock has potential to extend the uptrend and reach the price targets of ₹1,070 and ₹1,090 in the coming trading sessions. Traders can buy the stock with a stop-loss at ₹1,005 levels.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)