Coforge Breakout: IT Stock Shows Strong Bullish Momentum

Coforge witnessed a strong buying session, surging 4.23% to close at ₹2,045, supported by a sharp bullish candle and improving technical indicators. The stock is showing signs of renewed buying interest after a recent consolidation phase. From a technical perspective, Coforge is trading comfortably above its key moving averages, including the 20 EMA (₹1,925), 50 EMA (₹1,855), 100 SMA (₹1,725) and 200 SMA (₹1,540). This alignment indicates that the broader trend remains firmly positive, with both short-term and long-term structures favouring the bulls. The RSI has climbed to 66.74, reflecting strengthening bullish momentum without yet entering the traditional overbought zone. The MACD is trading above its signal line and zero line, indicating a positive momentum setup. However, the ADX stands at 18.15, suggesting that the strength of the prevailing trend is still developing. A sustained rise in ADX would provide additional confirmation of a stronger directional move. The stock is approaching an important resistance zone around ₹2,060–₹2,100. A decisive breakout above this zone, supported by strong volumes, could open the door for further upside. On the downside, ₹2,000 and ₹1,960 are important immediate support levels, followed by the stronger support zone near ₹1,925. My View: Coforge's technical structure remains bullish, with price trading above all major moving averages and momentum indicators turning favourable. A sustained move above ₹2,060 could strengthen the breakout setup. However, traders should watch volume confirmation and avoid chasing the stock after a sharp upmove. Disclosure: The analyst or his family does not have any position in the stock discussed. This article is for educational and informational purposes only and should not be construed as investment advice.