CAMS reclaims its 100-DMA; has the stock reversed its downtrend?

Let’s now talk about the indicators. Despite the sharp fall, the 14-period RSI did not enter in the oversold region.

Early in the month of September, the stock of Computer Age Management Services (CAMS) had hit an all-time high of Rs 4,067.40, and thereafter, stock entered into a downward spiral. During this phase, the stock had corrected nearly 27 per cent in just 21 trading sessions.  

On the way down, the stock has slipped below its important short-term and medium-term moving averages i.e., 20, 50 & 100-DMA. Despite the fact that the stock had breached its 100-DMA, the curve of 100-DMA is in a rising trajectory. As a result, on Monday, the tables seemed to have turned for the stock as it has jumped more than 4 per cent and with this, it ended its three-day losing streak and reclaimed its 100-DMA.  

On the way up, the stock has its resistance placed around the level of Rs 3,232, which happens to be the 23 per cent retracement level of the entire downmove, which is then followed by Rs 3,392, which happens to be a 38 per cent Fibonacci retracement.   

Let’s now talk about the indicators. Despite the sharp fall, the 14-period RSI did not enter in the oversold region i.e. did not slip below the 30-mark.  

The stock has outperformed the benchmark indices in the last one month as Nifty 50 index went up by 2.24 per cent during the same time period whereas the stock has slipped 16.47 per cent. Meanwhile, on a YTD basis, the stock has outperformed the benchmark indices as it went up by a staggering 72 per cent on a YTD basis.