KPIT Technologies – Support, Resistance & Breakout Projection

Reasoning

• The stock has corrected significantly (from its highs) and is seen by some analysts to be forming technical reversal signs.
  
• A support zone around ₹1,178 is considered strong; it has held recently after pulling back.
  
• A breakout above ₹1,420 is seen as critical by some for pushing toward higher targets.
  
• On the fundamentals side, KPIT is seen as well-positioned in the automotive / mobility / electric / AI / embedded software space, which is expected to drive growth.
  
• Margins, revenue growth near term are mixed: in latest quarter, revenue grew ~12-13% YoY, but net profit was down due to factors like currency fluctuations.
  
  Risk Factors / What Could Go Wrong
• Failing to break above critical resistance levels (e.g. ~₹1,420) could lead to renewed downside pressure.
  
• If macro / global automotive demand weakens, or input costs (salary, software, etc.) rise sharply, margin compression is possible.
  
• Currency volatility already showed some impact.
  
• Execution risk: Integration of new technologies (EV, connected/autonomous, AI) requires investment; delays or competition may hurt.
  
  KPITTECH Technical Projection
  Key Levels
  
• Immediate Support: ₹1,180-₹1,200 (recent strong base; multiple analysts highlighted ~₹1,178 as key).
  
• Secondary Support: ₹1,100 (if correction deepens).
  
• Immediate Resistance: ₹1,350 (short-term hurdle).
  
• Major Resistance: ₹1,420 (critical breakout zone; above this, big momentum expected).
  
• Medium-term Target Resistance: ₹1,500-₹1,550.
  
  1. Bullish Case (most likely, if sustains above ₹1,200 & breaks ₹1,420):
  
• Short term (2-4 weeks): ₹1,350-₹1,400
  
• Medium term (2-3 months): ₹1,500-₹1,550
  
• Long term (6-12 months): ₹1,600-₹1,650+ (aligns with high analyst targets)
  
  2. Neutral / Range-bound:
• If price trades between ₹1,200 and ₹1,350, it may consolidate before the next breakout.
  
• Swing traders can buy near support and book profit near ₹1,350.
  
  3. Bearish Case (if closes below ₹1,180):
• Downside to ₹1,100-₹1,120 is possible.
  
• Break below ₹1,100 could extend correction toward ₹1,050.
  
  Trading Approach
• Entry Zone: ₹1,220-₹1,250 (if it sustains above ₹1,200 support).
  
• Stop-Loss (SL): ₹1,175 (below major support).
  
• Target (Short term): ₹1,350, then trail SL to ₹1,250 for higher targets.
  
• Risk/Reward: ~1:2 or better if played for ₹1,500+
  
  Disclaimer:lnkd.in/gJJDnvn2