Indian equities extended their recovery, led by sustained buying in IT stocks, as strong quarterly results and upbeat management commentary reinforced confidence in the sector’s earnings outlook. While rupee appreciation and easing crude prices provide near-term support, analysts say global inflationary and geopolitical risks warrant caution. Sustaining the recovery will require broader earnings growth beyond IT, supported by an improvement in domestic demand and easing margin pressures.
Lemon Tree continues to find support in the Rs 102-100 band, which is a sacrosanct support cluster for the stock. A formation of a bullish anchor column from the same support band, and a follow through Double top buy on its Daily 0.25% P&F charts, indicates towards the presence of strong buyers are lower levels, and a shift in control towards buyers. At the same time, a bullish crossover of the 20DEMA, over its 50 DEMA, points towards improving momentum in the stock.
Hitesh Rathi, Technical Analyst - Equity & Derivatives, Angel One
The Rs 3,290-3,200 band is a very strong cushion for the stock, and the stock continues to attract buying in the zone, validated by the formation of a bullish anchor column from the same band. Alongside this, bullish 100% pole, further highlights the presence of strong demand at lower levels, alongside this a turtle breakout on the 0.25%*3 Daily Point and figure chart of the stock, indicates that the short-term momentum and control might be shifting.
Hitesh Rathi, Technical Analyst - Equity & Derivatives, Angel One