In my previous blog posted on Jun 17th, I had mentioned that KPIT has strong support around 106 to 107, and on Jun 19th it slightly went below that to 105.85 and made a sharp reversal back.
From the chart given below, we can see both Slow Stochastics & RSI signalling an upward direction
We can still see Parabolic SAR (main chart - green dotted line) trending down, so any breakout above 115 will give Parabolic SAR an upward trend
Very nice technical analysis. Do you have any fundamental dope on KPIT as well? Any views on 6-9 months timefram?
ReplyDeleteThank you NiDo for your positive comment. KPIT is fundamentally growing strong with NASSCOM giving guidance of 11% to 15% growth, KPIT is aiming at 30% growth
ReplyDeleteOn PE multiple front, industry average is at 18 and KPIT is 1.5 times higher at 27. With CAGR estimated around 36% I won't be surprised if PE for KPIT goes upto 30 to 35 in next 6 months to 9 months
Summary
KPIT is buy on dips and long term trend suggests that 150 to 180 is possible within 1 year time frame.
The overall long term trend will remain intact with KPIT having strong support around 85 to 87 levels
Nifty is expected to go down to sub 4500 levels and that should take KPIT down as well but I do not expect it to go below 85
Hope this analysis helps you to stay long on your investment strategy in KPIT