I have bought 200 shares of Persistent at Rs 570 for the short term. What should I do now? - Srinivasa Rao B
BOOK PARTIAL PROFIT AT THE CURRENT PRICE. HOLD LIMITED QUANTITY WITH STOP LOSS OF RS 594 ON CLOSING BASIS.
Persistent Systems Ltd is currently trading at Rs 618.55. Its 52-week high/low stand at Rs 915/Rs 532.80 made on September 10, 2018 and November 13, 2018, respectively. After registering its 52-week low, the stock has given minor bounce along with low volumes. For the near term, the stock has a cluster of resistances ahead, one is the opening downside gap resistance zone of Rs 658-Rs 629 created on October 22,2018 and the second one is 38.2 per cent Fibonacci retracement level of its entire downward journey from its 52-weeks high to 52-week low, which is at Rs 678.50. On the daily time frame, the stochastic has recently given negative crossover in the oversold zone, which predicts pause in the short term trend. The 14-period day RSI is also not able to cross above the 60 mark since September 10, 2018. Its crucial short term moving average, i.e. 21-day EMA is likely to act as minor support. Hence, we recommend you to book partial profit at the current price and hold limited quantity with stop loss of Rs 594 on a closing basis.