What’s next for Happiest Minds?

Happiest Minds Technologies is a digital transformation IT consulting and services company focused on big data, analytics cloud, mobility, and security services.

A midcap company with a market cap of Rs 19,744 crore, Happiest Minds has reported a strong growth performance over the past four years by turning a loss of Rs 13 crore in FY 2017-18 to a profit of over Rs 162 crore in FY 2020-21. Such strong performance is factored into its stock price evident from its price action. Last month, the company reported strong double-digit growth in their revenue and profits.

Promoters hold over 50% of the company’s stake. The foreign investors hold about 7% while the public holds over 34%.

Debuted on the exchange in September 2020, the stock has given 284% returns since then. YTD performance stands at 290% and one-month return stands at 5%. The stock delivered exceptional returns for the medium term, evident from the above point. The stock is under the ASM list of SEBI. Such violent price movement within a short period invite additional surveillance and the SEBI looks for price manipulation.

It's not a surprise that the stock is up 5% today and has hit the upper circuit. The stock is undergoing a slight correction after hitting the all-time high of 1580 and currently trades below its 50-DMA. Crossing this moving average will mean that the stock is ready for a bullish momentum in the short to medium term. The RSI jumped from 39 to 60. The MACD has given a crossover last trading session, but the ADX indicator is showing a downward path. Also, huge volumes haven’t been recorded today that confirm the bullishness of the stock. Traders should wait for more clarity and look to find clues for the upcoming trend.

As the stock is under the ASM list, participants are advised to trade with caution and wait for rising volumes that will provide more clarity.