What’s happening in this IT stock which is trading at life time high? Has rallied over 2430% in the last 3 years!

The company recently announced its alliance with Honda to accelerate the software-defined mobility (SDM) journey.

On Friday, Nifty wiped off all its gains after the strong gap-up opening but the IT sector emerged as one of the defending sectors in today’s fall.

Steady Rise 

While one midcap stock from the IT sector grabbed investors’ attention on D-street by rallying more than 7% in this bearish market and made a new lifetime high. It’s a proven multibagger, having soared more than 2400% from the lows of March 2020 (Rs 34.35).

Yes, we are talking about KPIT Technologies (NSE Code - KPITTECH), a global technology company with software solutions that will help mobility leapfrog towards an autonomous, clean, smart and connected future. With 6000+ Automobelievers across the globe, specializing in embedded software, AI & Digital solutions, KPIT enables customers to accelerate the implementation of next-generation mobility technologies. With development centres in Europe, the USA, Japan, China, Thailand and India.

New Partnership 

Interestingly, the company recently announced its alliance with Honda to accelerate the software-defined mobility (SDM) journey. The partnership will expand to over 2000 software system professionals to power Honda’s SDM roadmap until the year 2030 and beyond. Strong buying interest was seen in the stock as the growth prospects of the company took a positive shape. 

Technical analysis 

As per the technical setup, the stock is in an uptrend and registered a breakout above multiple tops in February 2023 which indicates the start of a fresh rally. In the last week, it rallied around 13% with huge volumes averaging 5 million per day, which was more than average as compared with the last few months. 

Today stock breached last one month’s consolidation zone of Rs 876 on the higher side and Rs. 797 on the lower side. All short-term leading and lagging indicators confirmed the strong momentum. A closing around the day’s high will become the highest closing ever. 

Investors looking for an opportunity in the IT sector should track this script closely.