Low Price Stock Jumps 10% With Expanding Volume; Ticks All The Boxes Of a Perfect Swing Trade!

Company Background  

Firstsource Solutions Limited, a RP-Sanjiv Goenka Group company, is a leading provider of transformational solutions and services spanning the customers lifecycle across Healthcare, Banking and Financial Services, Communications, Media and Technology and other industries.   

Company has an established presence in the US, Mexico, the UK, India and the Philippines and it act as a trusted growth partner for over 100 leading global brands, including several Fortune 500 and FTSE 100 companies.   

Stock Performance and Breakout  

The stock price of FSL has increased nearly 10% on Tuesday and with this strong up-move the stock has witnessed a breakout of saucer-like pattern and it has marked a fresh 52-week high. This bullish chart pattern is a cousin to a very widely followed pattern known as cup and handle pattern. Both the patterns share a U-shape structure which spans over many weeks. The main difference between the two is that the saucer base has a shallower profile and it resembles to a smiley, while, cup with handle shape is more of deep tea cup.   

The breakout of saucer like pattern is supported by strong volume of more than three times the 10-days average volume of 20.48 lakh shares per day highlighting larger participation in the direction of the trend.  The daily MACD is in uptrend and is seen rebounding taking support at its nine periods average thus validates positive bias in the stock. The daily 14 periods RSI has generated a buy signal, moving above its nine periods average, thus validating positive bias. The trend strength indicator, Average Directional Index (ADX) is at 13.67, and this ADX is in up trending mode. The +DI is much above the -DI and ADX. This structure is indicating the bullish strength in the stock.   

Revenue Split by Verticals and by Service Lines  

Revenue Split by Verticals  

In Q4FY23, revenue from the Banking and Financial Services stood at 40.3%, Healthcare was at 33.2%, Communication, Media & Tech was at 22.3% and Diverse Industries stood at 4.2%.   

Revenue Split by Service Lines  

In Q4FY23, revenue from Digitally Empowered Contact Centre stood at 52.6%, Intelligent Back office stood at 27% and Platforms, Automation & Analytics stood at 20.4%.   

Institutional Holding   

Institutional Investors holding have increased from 22.59% to 24.01 per cent in March 2023 quarter. FII/FPI have increased holding from 8.41% to 8.95% in March 2023 quarter and Mutual Funds have increased holdings from 12.45% to 13.32% in March 2023 quarter.