first solution stock price: Check chart: This mid-cap offers an attractive risk reward after a 40% drop from the high; oppose buying?

part of the IT Services industry, has fallen about 40% from its February 2022 peak but recent consolidation at lower levels suggests buying demand near support.

High-risk traders can look to buy stocks with a long-term target above Rs 200 over the next 5-6 quarters, experts suggest.

The stock hit a 52-week high of Rs 168 on February 2, 2022 but failed to keep up. Shares have bounced back after hitting a low of Rs 93 in June 2022.

The stock closed at Rs 103 on January 27, 2023, which is about 40% down from its 52-week high.

The stock is hovering near the 50 DMA on the daily chart. A clear breakout above the 200-DMA or 108 levels could give the stock more momentum. On the weekly chart, the stock is trading above the 200 WMA but below the 50 WMA.

The Relative Strength Index (RSI) is at 47.7. Trendlyne data shows that RSI below 30 is considered oversold and above 70 is considered overbought. The MACD is above the center line and the signal line, which is a bullish indicator.

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“Firstsource Solutions, after the first strong rally from Rs 20 to Rs 242 in six quarters (March 31, 2020 to September 30, 2021) has corrected back to a breakout of Rs 95 over the next 4-5 quarters (December 31). .2021) -30.12.2022) offers a great buying opportunity,” said Sujit Deodhar, Head of Technical Analysis, Wellworth Share & Stock Broking.

“It can be observed that after selling from higher levels, the stock has formed two Doji candles over the past two quarters showing the exhaustion of selling near the key support located at Rs 95-85, also is the 61.80% retracement of its advance,” he said.

“This makes FSL charts a great buy with an attractive risk-reward ratio. On the daily charts, all of its major moving averages have formed a group indicating that a big move is about to take place,” emphasized Deodhar.

“At the current level of Rs 106 and any drop in the Rs 95-85 support area, this stock qualifies as a strong buy with a huge upside potential target set at Rs 225, with a time limit of Rs. holding period of 5-6 quarters and a protective stop loss below Rs 80 on a daily close,” he recommends.

(Disclaimer: Recommendations, suggestions, views and opinions expressed by experts are their own. These do not represent the views of The Economic Times. )


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