Revival of select India software stocks

We discussed about Nucleus Software Exports, Geometric and Tech Mahindra in my previous posts. Let's review 5 India software stocks which appear interesting from a short term perspective.

I-Flex Solutions:

I-Flex touched a low of 889 on January 22, 2008 when Indian stock market took a pounding. This low has remained unbroken since then. After a three month consolidation pattern, the stock has now broken out with very good volume. One may think of its previous high at 1680 as the next target.

Infotec Enterprises:

Infotec Enterprises had touched a high of 449.90 during February 2007. It has fallen since then and made a low of 175.95 on March 18, 2008. The stock has achieved a bullish breakout with a full upward gap yesterday after the formation of a bullish inverse head and shoulder pattern. The next resistance for the stock is at 335 while the technical target works out to 404.

KPIT Cummins:

The stock made a high of 181.90 during January 2007 and during March 2008 it was trading at around 60 losing almost 2/3 of value in little over a year. Though the stock broke the previous support at 68 on March 17, it has bounced back strongly and has even broken the critical resistance at 95. Watch the volumes as it broke the previous support as well as when it reverses during March. The stock is expected to test the previous resistance at 141.80 while technical target works out to 154.

Polaris Software:

We can see a classic "double bottom" formation in the daily chart of Polaris. The stock has fallen terribly from a high of 237.25 on February 6, 2007 to a low of 62 on January 22, 2008. This low has remained intact so far. The volume leading upto the first peak indicates early accumulation while low volumes towards second trough typically occurs in the double bottom pattern. The stock did breakout yesterday with good volume. While one may expect the stock to test the previous resistance at 141.25, a weekly close above it may target around 222 which will be the resistance considering weekly chart.

Wipro:

Wipro's all-time high of 691 was achieved during February 2007. Recently it touched a low of 324 on January 22, 2008. Since then, a bullish inverse head and shoulder pattern has been formed. The bullish breakout from this chart pattern was achieved yesterday with good volume which confirms the pattern. The stock is expected to test its previous highs at 525 and 552. The technical target is estimated to be 572.