The upmove in the stock of Sonata Software has gained momentum. The stock has surged over 5 per cent breaking above the key resistance region of ₹610. This strengthens the case to see more rise going forward. The region between ₹615 and ₹600 is a strong support zone which can limit the downside.
As long as the Sonata Software stock trades above ₹600, the outlook will remain bullish. The chances are high for it to move up towards ₹700 over the next two-three weeks.
Traders can go long at current levels. Accumulate on dips at ₹615. Keep the stop-loss at ₹595. Trail the stop-loss up to ₹635 as soon as the stock moves up to ₹655. Move the stop-loss further up to ₹660 when the stock touches ₹670 on the upside. Book profits at ₹680
Note: The recommendations are based on technical analysis. There is risk of loss in trading