NIIT Limited gives trendline breakout

The stock of NIIT Limited has given a downward sloping trendline breakout on the weekly timeframe, formed by connecting swing highs from April 2018. The breakout was supported by the above 50-week average volumes. Additionally, the stock formed a sizeable bullish candle on the breakout week, adding strength to the breakout. 

As the stock is at its 52-week high, it is trading above all the short and long-term moving averages. The stock is meeting Daryl Guppy’s multiple moving averages set up rules as it is trading above both the short and long-term moving averages. There is a ‘golden crossover’ observed on the stock as the 50-DMA recently crossed above its 200-DMA, which is a positive sign. The leading indicator, RSI, is in a super bullish zone in both the weekly and the daily timeframe.

The MACD is above the zero line and the signal line in both the weekly and the daily timeframe. The MACD histogram suggests bullish momentum. And most importantly, the daily MACD line crossed the prior swing highs. The surge in +DI is suggesting the trend to strengthen further. The other volume-based indicators like OBV and Money Flow Index (MFI) are also very strong.

Technically, all the factors are currently aligned in support of the bulls. Hence, we would advise the traders to be with a bullish bias. On the downside, important support for the stock is placed at the zone of Rs 106-Rs 103 level.

On Friday, the stock of NIIT Limited closed at Rs 126 per share, surged by 16.13 per cent. The stock opened at Rs 109.90 per share and hit an intraday high of Rs 128.40 and a low of Rs 108 per share on NSE.