Hexaware Technologies form bullish engulfing candle

The stock of Hexaware Technologies Limited has formed a bullish engulfing candlestick pattern on the daily time frame. The bullish engulfing candlestick pattern is considered to be a bullish reversal pattern and usually occurs at the bottom of a downtrend.

Among the momentum indicators, the 14-period daily RSI is currently quoting at 43.99 and it is in a rising mode. The stochastic oscillator has also given a positive crossover on the daily time frame, which indicates a further upward momentum. Moreover, the positive divergence is clearly visible between the daily stochastic and stock price movement, which suggests a limited downside.

The Ichimoku chart on 30-minute time frame is clearly giving a positive view as it closed above KS and TS lines. Another important aspect is that the TS line crossed under the KS line, which is also a bullish sign. 

Going ahead, we expect the bias to remain positive as long as the stock sustains above Monday’s low of Rs 231.10 level. On the higher side, the level of Rs 260, followed by Rs 268, would be seen as the next resistance zone for the stock.

On Monday, the stock of Hexaware Technologies closed at Rs 249.55 per share, surged by 5.92 per cent. The stock opened at Rs 232 per share and hit an intraday high of Rs 255.90 and a low of Rs 231.10 per share on NSE.