Potential breakout stocks to watch: L&T Technology Services and Persistent Systems

L&T Technology Services and Persistent Systems are identified as upside potential stocks based on technical analysis. Both stocks have displayed promising technical setup, including price volume action before and a potential to bounce back and breakout. Currently trading at Rs 5,418.15 and Rs 8,409.80 respectively, their price structures align with positive signals from technical indicators like RSI and ADX, breakout scenario in coming time.

L&T Technology Services Ltd 

Daily chart of L&T Technology Services Ltd

On the daily chart, L&T Technology Services is presently showing rapid ascend from near support; the stock price is moving with a strong green candle. The stock price may resume its strong momentum-up advance in the upcoming trading sessions if it is able to cross and close above its 52-week high level with the support of decent volume compared to current volume. Volume started to rise from last two days.

Those who are considering a possible trade in L&T Technology Services might purchase the stock at the present price with a stop loss of Rs 5,228 and aim to capitalize above its all-time high.

The stock price is currently trading above its support level, suggesting that it is likely about to turn short-term bullish once more. The stock appears to be quite neutral when one looks at the Relative Strength Index, which is now trading at 55.49. The ADX of 24 indicates the present state of price momentum, which is probably going with a good momentum.

In the event of a retracement, it is essential to monitor key support levels, particularly at Rs 5,060. The minor upper resistance is 52-week high, and if the stock starts back-to-back closes above 52-week high, then the stock may consistently trade above current levels.

L&T Technology Services Ltd. offers consultancy, design, development and testing services across the product and process development life cycle.

Persistent Systems Ltd 

Daily chart of Persistent Systems Ltd

Persistent Systems’ current performance is typified by a favourable technical setup. The company is now trading at Rs 8409.80 and consolidating to initiate a fresh uptrend. The stock price is currently trading slightly above the 50-day EMA.

Those interested in a possible trade in Persistent Systems could purchase the stock at the present price, setting a stop loss at Rs 8,114, and aim for a target price that is higher than the firm’s 52-week high.

The stock is trading above its 50-day highs, and it is expected to find support at these levels going forward. The prior uptrend of the stock price gained 48% of its value. Relative Strength Index is now up from the bottom end, trading at 51.50. This implies that there may be a potential to increase in stock price strength. The ADX, which is now around 32, shows good momentum and directional strength.

The level at Rs 7,950 serving as a crucial indicator for corrective movement and the overall market structure favours traders if the stock crosses and trades above 52-week high.

Persistent Systems Ltd. is a technology services company.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.