NIIT LTD gives trendline breakout

The stock of NIIT Limited has given a downward sloping trendline breakout on Wednesday, formed by connecting swing highs from April 2018. The breakout was supported by strong volumes. Additionally, the stock had formed an opening bullish Marubozu candle on the breakout day, which added further strength to the breakout. The opening bullish Marubozu candle has no shadow extending from the opening price end of the body. The opening bullish Marubozu candle indicates an extreme bullishness.

The major trend of the stock is bullish as it is trading above its weekly pivot and above its long and short-term moving averages, i.e. 20-day, 50-day, 100-day and 200-day EMAs and these moving averages are exactly in an ascending order, which suggests that the trend is strong. The leading indicator, 14-period daily RSI is currently quoting at 72.03 and it is in super bullish zone.

Interestingly, the daily RSI has broken out of the symmetrical triangle pattern, which is a very bullish sign. The daily MACD stays bullish as it is trading above its zero line and signal line. The ADX is at 21.41 on the daily chart. The +DI is much above –DI, pointing out that the strength of the trend is strong enough. 

Going ahead, the zone of Rs 104.50-Rs 102.70 is likely to act as a good support as eight-day EMA and 13-day EMA are placed in that region. While on the upside, the level of Rs 116.85, followed by Rs 124.80, would be seen as the next resistance zone for the stock.

On Wednesday, the stock of NIIT Limited closed at Rs 113.05 per share, surged by 5.90 per cent. The stock opened at Rs 106.30 per share and hit an intraday high of Rs 113.80 and a low of Rs 106.30 per share on NSE.