Take Solutions surges 6 per cent plus, gives major resistance breakout

Indian benchmark indices opened on a positive note on Monday and were trading gradually upwards, driven by marginal upsurge in almost all sectoral indices, except IT sector. However, Take Solutions, which does not form a part of Nifty IT, but is into IT software and Consulting, has surged more than 5 per cent from Friday’s closing.

After taking support on closing basis near 150 levels, the stock witnessed a reversal on March 26. After correcting near to 50 per cent retracement of the reversal, the stock bounced back from April 2, when it announced that its wholly-owned subsidiary, Take Solutions Global Holding Pte, Singapore, offloaded entire stake in Muscat-based step down arm, Towell Take Investments LLC. Since then the stock has been rising in almost every trading session.

After falling from its all-time high at 210.50 in December 2015, the stock has been trading in a range of 120 and 175 on a closing basis. On a weekly basis, the stock also breached its major high at 189.30. Considering the daily time frame, on April 9, the stock gave a breakout of the long awaited trendline and also a multiple resistance at 175.50. The breakout is supported by volume spurt where volumes have surged above 90,000 lakhs after October 30, 2017. The 14-period RSI too saw a trendline breakout at 61 levels.

The stock holds potential upside of 50 points in the medium term either on a continued basis or after a pullback. It may breach its all-time high level in the medium term.