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Persistent Systems Ltd Recorded 900% Growth In Stock Price

31 May 20233 mins read by Angel One
Nifty IT showed decent strength in which companies like Infosys, Tech Mahindra, and Wipro contributed the most.
Persistent Systems Ltd Recorded 900% Growth In Stock Price
ShareShare on 1Share on 2Share on 3Share on 4Share on 5

Nifty breached the consolidating range of the last 2 days and traded lower, almost filling the recent gap. Currently, it is trading around the day’s low which also has a psychological and derivative support level of 18,500. In these weak sentiments defensive sector, Nifty IT showed decent strength in which stocks like Infosys, Tech Mahindra, and Wipro contributed the most and one more stock from the same sector which we are going to discuss today is now trading just below the long-term breakout trendline.

The stock is Persistent Systems Ltd provides software engineering and strategy services to help companies implement and modernize their businesses. It has its own software and frameworks with pre-built integration and acceleration. The firm operates through the following segments: Banking, Financial Services & Insurance, Healthcare and Life Sciences, and Technology Companies & Emerging Verticals.

After the massive rise of around 900% from the lows of March 2020, the stock is consolidating in a broad range of Rs 4987.50 on the higher side and Rs 3102 on the lower side from the first 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. If we draw the trendline from the highs of the first week of January 2022 (Rs 4987.50) and from the highs of mid-week of February 2023 (Rs 5135) we’ll get the trendline of the breakout pattern named “Breakout above multiple tops”. Minimum possible targets of this pattern will be around Rs 6500 which is more than 25% from the current levels. 

Interestingly stock is now trading just below the breakout level at Rs 5140 and closing above Rs 5200 on a weekly basis will confirm this breakout, thus long-term investors should track it closely for the next few trading sessions.

 

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