"The stock has a strong resistance at Rs 724-740 level, if it gives a close above this level then it may spurt further up to the level of Rs 854 while downside support comes at Rs 640 level," says Sumeet Bagadia, Associate Director, Research at choiceindia.com.
Sumeet Bagadia
Cyient has made an all-time high level with an accentuated volume activity which makes a sense for an upside movement for the long-term perspective, however if we have a look at a shorter time horizon then the stock has faced a strong resistance of its upper band of Rising Wedge formation on a daily chart which is a point for a concern and mostly traders use this opportunity to get in to the short trade when the price of the counter faces the top resistance.
However, the stock has been trading with a 21*50 Weeks Moving Average which suggest a positive trend of the stock but in a longer term.
A weekly RSI which is trading at 67.45 level with a positive crossover, has a strong resistance at 70-72 marks as it also faced the same in past and retraced its move, points out for a southward movement in the prices.
Short term participants should avoid new long positions, except at the levels where the risk/reward ratios will work in their favor. However, for long-term investors who have made their investment at a lower level, this phase of the journey is excellent for them to book profit or can trail their stop loss at a reasonable level.
With the ongoing structure, the stock has a strong resistance at Rs 724-740 level, if it gives a close above this level then it may spurt further up to the level of Rs 854 while downside support comes at Rs 640 level.