EClerx Services Stocks Registered a Breakout With 6% Rise!

Nifty breached the last 3 days consolidating range with a gap-up opening triggered by a global market surge. After such a strong opening, it traded in a small range but in the closing session it lost the strength and now it is trading around the day’s low. In such bullishness, one stock from the service sector industry showed decent strength as it rallied more than 6% in today’s trading session and registered a long-term technical breakout.

The stock is EClerx Services Ltd is engaged in providing Knowledge Process Outsourcing (“KPO”) services to global companies. The Company provides data management, analytics solutions and process outsourcing services to a host of global clients through a network of multiple locations in India and abroad like the USA, UK, and Europe. The company was founded by Priyadarshan Mundhra and Anjan Malik on March 24, 2000, and is headquartered in Mumbai, India.

After the massive rise of more than 800% from the lows of March 2020, the stock is consolidating in a broad range of Rs 1712 on the higher side and Rs 1221 on the lower side from the second week of January 2022. Interestingly the lower side of the consolidation range is exactly the retracement support level of 38.2% of the last multibagger rally on the weekly chart. 

From the last 2 weeks, the stock has witnessed huge volumes which indicates strong bullishness. On the daily chart, it registered a breakout of the last 4 days’ consolidation range by rallying more than 6% with strong volumes in which more than 2.5 lakhs shares were traded. This suggests that the stock is ready to break the weekly consolidation range as well. 

Stock is trading at Rs 1716 and weekly closing around this level can lift it to Rs 2300 which is more than 30% from the current level. Thus, long-term investors should track it closely.