Top trending stock: LTTS

The stock of LTTS is extremely bullish lately and is up by over 2% on Thursday.

L&T Technology Services Ltd is engaged in providing engineering solutions. Its services include product design, analysis, prototyping and testing, and engineering process support. With a market capitalization of about Rs 49000 crore, it is one of the strongest companies in its sector.

The stock of LTTS is extremely bullish lately and is up by over 2% on Thursday. It has risen in all the past four trading sessions and has gained nearly 10% during this period. The stock found a strong support level at its 200-DMA which lies near Rs 4250. It is trading well above its 20-DMA as well. With today’s price action, the stock has crossed above its prior swing high of Rs 4612.10.

As per the technical indicators, the stock is seen gaining strength for upside momentum. The 14-period daily RSI has jumped above 50 and indicates improved strength in the stock. The MACD histogram is rising steadily and shows the upside momentum of the stock. The Elder Impulse System continues to indicate a buy signal while Daryl Guppy’s Multiple Moving Average suggests short term bullishness. The other momentum oscillators and indicators also suggest upside momentum of the stock. Interestingly, the stock has recorded above-average volumes lately, which demonstrates strong buying at lower levels.

In one month, the stock has risen by 1% while Nifty IT has slipped over 2%. Moreover, the stock has also outperformed most of its peers during this period.

Thus, the overall picture looks bullish for the short term. As per the technical chart, the stock is likely to face a tough resistance at Rs 4800 level, which happens to be its prior swing high, followed by Rs 5000 which happens to be its 50-DMA level.

Considering ongoing momentum, the stock is expected to perform well in near future. Short term traders/swing traders can take note of this and can expect decent returns in short term.