The short-term outlook is bullish for Mphasis. The stock has surged over 7 per cent last week and has closed on a strong note. The price action since the last week of July indicates a bull channel. Strong and cluster of supports are there in the ₹3,000-2,950 region. Intermediate dips are likely to get fresh buyers at lower levels. We expect the stock to sustain above ₹3,000 itself in the coming weeks. Mphasis share price can rise to ₹3,330 – the upper end of the channel.
Traders can go long now at ₹3,096. Accumulate on dips at ₹3,030. Keep the stop-loss at ₹2,930 initially. Trail the stop-loss up to ₹3,120 as soon as the stock goes up to ₹3,160. Move the stop-loss further up to ₹3,210 when the share price touches ₹3,250. Exit the long positions at ₹3,325.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)