Birlasoft shares hit record high today, overbought on charts; what’s next?

Shares of multibagger Birlasoft Ltd hit record high despite a sharp correction in Sensex and Nifty today. Sensex slumped 1,053.10 points to 70,370 and Nifty ended 333 pts lower to 21,238. The IT stock hit a record high of Rs 817.65 against the previous close of Rs 803.60. The multibagger stock has risen 163.96% in a year and gained 221% in three years. The benchmark BSE 500 index zoomed 61% in the last three years. The IT stock has climbed 14% this year.

Birlasoft shares ended 0.32% higher at Rs 806.15 on Tuesday. Total 0.91 lakh shares of the firm changed hands amounting to a turnover of Rs 7.33 crore on BSE. Market cap of the firm rose to Rs 22,229 .50 crore on BSE. The multibagger IT stock fell to a 52-week low of Rs 250.35 on February 3, 2023.

Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher said, “The stock has been in a strong uptrend since the last 7-8 months with recently finding resistance near Rs 806 zone and witnessing some consolidation maintaining the support near Rs 760 levels. A decisive breach above Rs 806 zone is needed to carry on the positive move further for next targets of Rs 855 and Rs 890 levels in the coming days. The view shall get negated only after a decisive breach below Rs 690 (50EMA level) is confirmed from current levels.”

Abhijeet from Tips2trades said, "Birlasoft stock price is bearish & overbought on the Daily charts with strong resistance at 805. Investors should book profits at current levels as a Daily close below support of 745 could lead to 675 in the near term."

Birlasoft stock has a one-year beta of 0.4, indicating very low volatility during the period.

In terms of technicals, the relative strength index (RSI) of the stock stands at 72.3, signaling it's trading in the overbought zone. Birlasoft stock is trading higher than the 10 day, 20 day, 50 day, 100 day and 200 day moving averages.

The IT company reported a 26 per cent rise in profit after tax (PAT) to Rs 145 crore for the September 2023 quarter against a profit of Rs 115 crore in the same period last year.

Revenue from operations in the September 2023 quarter rose 9.8 per cent to Rs 1,309 crore against Rs 1,192 crore in the year-ago period.

Birlasoft is engaged in providing information and communication, computer programming, consultancy, and related activities. The company provides a range of services, which includes digital and enterprise technologies and services.

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