Is This A Good Time to Buy Mastek Ltd Stock ?

Mastek Li stock is worth watching as the stock is forming a 7-week, 23% deep Cup Without Handle Base. The current price is only 1.0% away from its ideal buy price of INR 2875. Aggressive investors could use any tight area breakout inside the base as an opportunity to initiate a small position. A conservative approach may be to add the stock to your watchlist so that you are ready to pounce if it breaks out to the traditional entry point.

 

The key trend lines, 10 and 40-week moving averages are at a comfortable position. The current trends of both the averages are upward and the 10-week moving average is trending above the 40-week moving average. The current price of the stock is trading around  13.0% away from the 10-week moving average.

 

Mastek Li has been an outperforming stock as compared to the broader market. It has a strong Relative Strength Rating of 90. In the last twelve months, the stock has rallied over 250.4% as compared to 52.5% for the Nifty500.

 

The Relative Strength Line of the stock is offering a lot of encouragement to investors. It has been making good progress in the last four weeks. The overall long term trend of the line is also trending upward. If Mastek Li can maintain this outperformance, it could make sense as a CANSLIM trade.

 

Mastek Li stock has strong institutional support. The Accumulation/Distribution Rating of 'A+' represents heavy institutional buying over the past 13 weeks. Although the shares held by institutions dropped in the last quarter, the number of institutions holding the stock increased at the same time. This shows increasing interest among the institutions.

 

On the earnings front, Mastek Li has an excellent EPS Rank of 97, which indicates consistency in earnings. The earnings and sales for the stock have grown by 38% and 27%, respectively over the past three years. Its 3-years earnings stability is 11, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 55% and 27%, respectively. The 5-years earnings stability is 18. The return on equity for the last reported year is 25%.

 

The stock belongs to the industry group of Computer-Tech Services, which is exhibiting a fair amount of strength in the current market environment. The current industry group rank is 59. The current price of Mastek Li is 1% off from its 52-week high price and  313% above its 52-week low price.

 

The stock appears on our idea lists: Growth 50, Minervini Trend Template.