Zensar Technologies Ltd

Promising gains for investors: Zensar Technologies breaks out to three-year high

Surging nearly 11%, the stock reached a three-year high, affirming a continuation pattern. With a target of Rs 720, it beckons both swing traders and long-term investors.

Zensar Technologies Ltd., a prominent player in digital solutions and technology services, reveals an intriguing stock performance narrative. Part of the Mumbai-based RPG group, Zensar operates in two key segments: Digital and Application Services, and Digital Foundation Services, catering to industry verticals such as Hitech & manufacturing, consumer services, and banking, financial services, and insurance.

In early September 2023, the stock initiated a retracement phase after reaching a high of Rs 575, following the previous rally that commenced on December 23, 2022, at Rs 201.5. This consolidation period lasted for over 65 days, finding robust support at the 23.6% Fibonacci retracement level along with the 100 DMA.

During a recent trading session, a surge in buying interest propelled the stock to nearly a three-year high, closing above key short-term daily moving averages (DMA) with the crossover of 5-20-50 DMA. Notably, a significant breakout trendline emerged, connecting the high point of September 5, 2023 (Rs 575), with the peak of November 21, 2023 (Rs 555.55). This formation represents a technical continuation price pattern that unfolded over 65 days.

In today’s trading session, the stock experienced an upward movement of nearly 11%, reaching a day high of Rs 606.10, surpassing the mentioned breakout trendline at Rs 551 with strong volumes exceeding 18 million shares. The 14-day RSI, currently placed in the super bullish zone at 62, instils optimism among investors. This entire trading action confirms the breakout of the continuation price pattern.

With a potential target set at Rs 720, representing an approximate gain of 30% from the breakout threshold at Rs 551, this scenario presents an enticing opportunity for both swing traders and long-term investors closely monitoring Zensar Technologies Ltd.'s performance. The company’s trajectory offers a promising outlook, brimming with potential for further upward gains.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.