Top buzzing stock: R Systems International

R Systems International Limited is engaged in providing Information Technology and IT-enabled Services solutions and services. With a market capitalization of about Rs 4000 crore, it is one of the most promising smallcap companies in the IT space. On average, the company has generated about 60% net profit annually in the last four financial years. Thus, the company has performed strongly in its sector.

A little above 50% of the stake is held by the promotors, while the rest is held by HNIs and the retail portion. In the last year, the stock has delivered about 180% returns to its investors, while it has reported a 15% increase in its share value in just one month. Thus, the stock has performed exceptionally well in the short to medium term.

On the technical chart, the stock has formed an ascending triangle-like pattern. The stock has surged nearly 5% and has given a breakout of its pattern on Monday. It has also hit its all-time high of Rs 354.45 during the process. The bullish pattern breakout is supported by several technical indicators, like RSI which has entered the bullish territory. MACD has given a fresh buy signal above the zero line. Moreover, the ADX is rising and is above 25, which indicates a strong uptrend. All the short-term and long-term moving averages are upward sloping, which indicates the bullish nature of the stock. Moreover, the volume recorded today is above 10-day and 30-day average volume, which is an indication of strong buying interest from market participants.

According to the pattern, the stock has the potential to surge as much as 50% in the short to medium term. Considering the stock’s price action and huge volume, and with technical indicators showing no signs of halting, the stock is expected to climb higher in the coming days.