Get started

BSOFT

BSOFT: Trendline BO, Double Bottom Formation, Chart of the WeekIs NSE:BSOFT Technical Breakout Real? What the Charts Tell You About This Mid-Cap IT Giant's Next Move after Weaking Rupee and Strong Margins Recovery in Q2FY26. Let's Analyze in Chart of the Week. As per the Latest SEBI Mandate, this isn't a Trading/Investment RECOMMENDATION nor for Educational Purposes; it is just for Informational purposes only. The chart data used is 3 Months old, as Showing Live Chart Data is not allowed according to the New SEBI Mandate. Disclaimer: "I am not a SEBI REGISTERED RESEARCH ANALYST AND INVESTMENT ADVISER." This analysis is intended solely for informational purposes and should not be interpreted as financial advice. It is advisable to consult a qualified financial advisor or conduct thorough research before making investment decisions. Price Action Analysis: Long-Term Trend Structure: - The stock experienced a strong uptrend from early 2022 to peak levels around ₹861.85 (High) in early 2024, representing a massive rally from the ₹250-300 base - Following the peak, Birlasoft entered a prolonged correction phase, declining from ₹861.85 to a low of ₹250.25, marking approximately 71% retracement from the top - Currently trading at ₹432.75 as of December 6, 2025, showing a recent +13.82% bounce - The stock has been consolidating in the ₹350-450 range for the past several months after bottoming out Current Price Action Characteristics: - Recent price action shows signs of accumulation near the ₹350-380 support zone - The stock broke above a descending trendline (cyan line on the chart) which connected the highs from early 2024 through late 2025 - This trendline break suggests a potential shift in momentum from bearish to bullish - The green horizontal box at the bottom (₹300-350 zone) appears to mark a strong demand zone where buyers stepped in aggressively - Post-trendline breakout, the stock has shown resilience with higher lows being formed Stage Analysis Interpretation: - The stock broke the trendline after a Stage 4 breakdown - Formed a Stage 1 type of double bottom base pattern - Was in Stage 2 Uptrend between April 2023 and February 2024 - No Stage 3 distribution pattern was visible on top - The presence of weak rupee and improving operating margins has added fundamental strength Volume Spread Analysis: Volume Distribution Patterns: - The volume chart shows significant spikes during key price movements - Major volume accumulation visible during the decline phase in late 2024 and early 2025, suggesting capitulation - Recent volume (25.13M) is substantially higher than the average (7.84M), indicating increased participation - Volume spikes coinciding with the recent rally from ₹350-380 levels suggest genuine buying interest - The green volume bars in recent sessions indicate buying pressure supporting the upward move Volume-Price Relationship: - During the downtrend, volume increased on down days, confirming selling pressure - At the bottom formation (₹300-350 zone), volume remained elevated but price held ground - classic accumulation behavior - The breakout from the descending trendline came with above-average volume, validating the move - Current volume levels suggest institutional interest is returning to the stock Base Formation and Support Levels: Base Structure: - A clear double bottom pattern formed at approximately ₹350-380 levels - The base formation period spans from mid-2025 to current levels - This base represents a 5-7 month consolidation, allowing weak hands to exit and strong hands to accumulate - The green box marked on the chart (₹300-350) represents the primary support zone Key Support Levels: - Immediate support: ₹380-400 (previous resistance turned support) - Strong support: ₹350-365 (double bottom lows) - Critical support: ₹300-320 (absolute base of consolidation) - The 52-week low at ₹250.25 acts as a psychological support level Support Significance: - The ₹350-380 zone has been tested multiple times and held firm, indicating strong buying interest - Volume accumulation in this zone suggests institutional accumulation - Any pullback toward ₹380-400 would be a retest opportunity for the breakout Resistance Levels: Immediate Resistance Zones: - First resistance: ₹450-460 (previous consolidation highs) - Second resistance: ₹500-520 (psychological level and minor supply zone) - Major resistance: ₹600-650 (significant supply zone from the downtrend) - Ultimate resistance: ₹750-800 (prior distribution zone before major correction) Resistance Analysis: - The descending trendline, now broken, may act as dynamic support on pullbacks - The ₹450 level represents a minor hurdle but has been approached multiple times recently - Breaking above ₹500 would confirm the bullish structure and potentially trigger momentum buying - The journey to ₹600+ would require sustained buying and improvement in business fundamentals Technical Patterns: - Double Bottom Pattern: Clearly visible at ₹350-380 levels with two distinct lows - Descending Trendline Breakout: The cyan trendline connecting lower highs has been decisively broken - Rounding Bottom Formation: The overall structure from the peak shows a gradual rounding bottom (Not a Textbook Kind) - Higher Low Pattern: Recent price action shows formation of higher lows post-breakout (on Lower TF) Pattern Implications: - Double bottom patterns typically indicate trend reversal - The trendline breakout adds conviction to the bullish thesis - Continuation patterns forming above ₹400 would strengthen the uptrend structure Risk Considerations: - Failure to hold above the descending trendline (now support at ₹400-410) would negate the bullish setup - A break below ₹380 would signal renewed weakness - The stock must close above ₹450 on good volume to confirm the breakout Sectoral Backdrop - Indian IT Services Industry: Current Industry Landscape: - The Indian IT sector is navigating a challenging demand environment with 77% of providers expecting higher business growth in FY26 compared to last year, driven by growing foundational digital scope, emerging markets, and strategic AI-led demand - IT exports are expected to cross the $200 billion mark, growing 4.6% year-over-year to reach $224 billion in FY25 - The sector faces uncertainty due to global macroeconomic conditions, with clients delaying discretionary technology spending - However, IT spending in India is expected to rise 11.1% year-on-year to $161.5 billion in 2025 Emerging Trends and Opportunities: - AI and digital transformation continue to be major growth drivers across the industry - Overall IT hiring grew 16% year-over-year in April 2025, driven by AI adoption, cloud modernization, and rapid expansion of Global Capability Centres - Non-metro cities like Udaipur, Vizag, Coimbatore, and Nagpur are experiencing over 50% IT hiring growth - Mid-tier IT companies have shown better agility in navigating uncertain macroeconomic conditions compared to larger counterparts Sector Challenges: - The sector faces its eighth consecutive quarter of single-digit revenue growth, with weak client spending and reduced digital transformation budgets as main culprits - Rising H-1B visa fees and Trump tariffs are creating indirect headwinds for the industry - Life sciences and manufacturing verticals are experiencing softness - Margin pressures from rising wages, talent shortages, and shift to more onsite work models Fundamental Backdrop: Business Overview: - Birlasoft Limited provides cloud, artificial intelligence (AI), and digital technologies, combining domain expertise with enterprise solutions across banking, financial services, insurance, life sciences, energy resources, utilities, and manufacturing verticals - The company offers services in customer experience, data analytics, connected products, intelligent automation, blockchain, and generative AI - In fiscal year 2025, the company achieved consolidated revenue of ₹53,752 million, with the Americas contributing 86.5% of total revenue - Part of the CK Birla Group, bringing strong promoter backing and group pedigree Recent Financial Performance: - Q2 FY25 revenue was $163.3 million, showing 3.1% sequential growth in rupee terms and 2.6% in dollar terms, with year-over-year growth of 4.5% - Q3 FY25 revenue reached ₹1,383.48 crore, up 0.9% year-over-year but down 1.29% quarter-over-quarter - EBITDA margin dropped to 12.1% in Q2 FY25 from 14.7% in the previous quarter, partly due to pricing flexibility and increased on-site work - Net profit was ₹116.10 crore in Q2 FY26, down 8.95% year-over-year but showing 9.09% sequential growth Operational Highlights: - The company delivered approximately $300 million in deal signings in the first half of FY25, though lower than the previous year - Cash and bank balance stood at $221.8 million with operating cash flow of $12.9 million - Days sales outstanding (DSO) at 58 days remains among the best in the industry - Workforce strength of approximately 12,500+ professionals with attrition improving to around 11.8% Key Challenges: - Life sciences vertical has been underperforming and is expected to remain soft for a couple more quarters - Manufacturing vertical, the company's largest, experienced project closures and ramp-downs - Shift in revenue mix toward 51% onsite work has pressured margins - Customer decision-making delays have affected deal flow and total contract value performance Positive Catalysts: - Three of four verticals (BFSI, Life Sciences & Services, Energy & Utilities) delivered sequential growth in Q2 - Management indicates improving pipeline with expectations of better deal flow in H2 - Recent AWS competency achievements in Manufacturing and Industrial Consulting enhance credibility - CEO Angan Guha's reappointment for another two-year term provides leadership continuity - Weak rupee environment provides tailwinds for export-oriented revenue - Focus on improving operational efficiency and margin expansion through offshore shift Valuation Context: - Market capitalization stands at approximately ₹10,816 crore - The stock has corrected significantly from highs, potentially offering better risk-reward at current levels - P/E multiple compression during the correction phase may present opportunity if earnings stabilize Overall Technical Assessment: - The stock has completed a multi-month base formation and broken above a critical descending trendline - Volume confirmation on the breakout adds credibility to the move - The double bottom pattern at ₹350-380 provides a well-defined risk level for traders - Risk-reward ratio favors bulls with clear support and resistance levels Bull Case: - A decisive close above ₹500 would open doors for ₹600+ levels - Improving business fundamentals and sectoral recovery would support the technical breakout Bear Case: - Failure to hold the breakout level (₹400-410) would indicate a false breakout - A breach below ₹380 would negate the bullish setup and potentially retest the ₹350 base - Weak quarterly results or deteriorating sector conditions could trigger profit booking My 2 Cents: NSE:BSOFT presents an interesting technical setup after a prolonged correction. The completion of a double bottom base formation, coupled with a descending trendline breakout on good volume, suggests the worst may be behind for the stock. While fundamental challenges persist in the form of muted demand environment and margin pressures, the company's focus on operational efficiency, improving deal pipeline, and sector positioning in high-growth areas like AI and cloud provide reasons for optimism. The technical structure suggests that patient accumulation in the current range with strict risk management could be rewarded if the company executes on its operational plans and the broader IT sector demand improves. However, investors should remain cognizant of the challenging macroeconomic backdrop and monitor quarterly results closely for signs of sustainable business improvement. The confluence of technical breakout and improving operational metrics makes Birlasoft a stock worth watching for both tactical trades and strategic accumulation, provided risk management principles are strictly followed. Full Coverage on my Newsletter this Week Keep in the Watchlist and DOYR. NO RECO. For Buy/Sell. 📌Thank you for exploring my idea! I hope you found it valuable. 🙏FOLLOW for more 👍BOOST if you found it useful. ✍️COMMENT below with your views. Meanwhile, check out my other stock ideas on the right side until this trade is activated. I would love your feedback. As per the Latest SEBI Mandate, this isn't a Trading/Investment RECOMMENDATION nor for Educational Purposes; it is just for Informational purposes only. The chart data used is 3 Months old, as Showing Live Chart Data is not allowed according to the New SEBI Mandate. Disclaimer: "I am not a SEBI REGISTERED RESEARCH ANALYST AND INVESTMENT ADVISER." This analysis is intended solely for informational purposes and should not be interpreted as financial advice. It is advisable to consult a qualified financial advisor or conduct thorough research before making investment decisions.
NSE:BSOFTLong
by Karanshah137
3
BUY TODAY SELL TOMORROW for 5%DON’T HAVE TIME TO MANAGE YOUR TRADES? - Take BTST trades at 3:25 pm every day - Try to exit by taking 4-7% profit of each trade - SL can also be maintained as closing below the low of the breakout candle Now, why do I prefer BTST over swing trades? The primary reason is that I have observed that 90% of the stocks give most of the movement in just 1-2 days and the rest of the time they either consolidate or fall Trendline Breakout in BSOFT BUY TODAY SELL TOMORROW for 5%
NSE:BSOFT
by Kapil-Mittal
8
BIRLASOFT LIMITED is showing a bullish Technical setupBirlasoft Ltd. is showing a bullish technical setup with a double bottom pattern and RSI positive divergence on the weekly chart, suggesting a potential trend reversal from recent lows. Understanding the Setup: Double Bottom + RSI Divergence Birlasoft Ltd, currently trading around ₹376.60, has recently formed a double bottom pattern on its weekly chart—a classic bullish reversal signal. This pattern typically appears after a prolonged downtrend and consists of two distinct troughs at roughly the same price level, separated by a moderate peak. It reflects a shift in market sentiment from bearish to bullish. In Birlasoft’s case, the two bottoms were formed near the ₹330 zone, indicating strong support. The neckline resistance lies around ₹450, and a breakout above this level could confirm the pattern and trigger further upside. RSI Positive Divergence: Momentum Shift Adding strength to this setup is the Relative Strength Index (RSI) positive divergence. While the stock price made a lower low/equal low during the second bottom, the RSI made a higher low—signaling that bearish momentum is weakening. This divergence often precedes a price reversal and suggests that buyers are gradually regaining control. Educational Takeaway This setup is a textbook example of how combining price action with momentum indicators can enhance technical analysis: Double Bottom: Indicates potential reversal and strong support. RSI Divergence: Confirms weakening bearish momentum. Volume Confirmation: A breakout above ₹450 with rising volume would validate the pattern. Traders often wait for a breakout above the neckline with strong volume before entering long positions. Stop-losses are typically placed just below the second bottom to manage risk. Final Thoughts While the technicals suggest a bullish bias, it's crucial to monitor broader market conditions and company fundamentals. Birlasoft operates in the IT services sector, which is sensitive to global tech trends and client spending cycles. This live chart analysis offers a compelling case for a potential trend reversal, but disciplined execution and risk management remain key.
NSE:BSOFT
by NANARKAR
BSOFT rejecting trendline for bullish runBSOFT ready for another rally? RSI oversold at same trendline from where it has a rally of 230+ % from the same trendline. Points to note: 1. No divergence to support this rally so far except oversold process. 2. Fake breakout at trendline. 3. Close above this trendline and retest it as a support is most important factor here. Pure analysis for bullish and long term investment purpose, purely technical. Kindly check for fundamental analysis for investing purpose.
NSE:BSOFTLong
by AbsoluteAnalytics
BSOFT - Ichimoku Breakout📈 Stock Name - Birlasoft Ltd 🌐 Ichimoku Cloud Setup: 1️⃣ Today's close is above the Conversion Line. 2️⃣ Future Kumo is Turning Bullish. 3️⃣ Chikou span is slanting upwards. All these parameters are shouting BULLISH at the Current Market Price and even more bullishness anticipated AFTER crossing 750. 🚨Disclaimer: This is not a Buy or Sell recommendation. It's for educational purposes and a guiding light to learn trading in the market. #CloudTrading #IchimokuCloud #IchimokuFollowers #Ichimokuexpert Excited about this analysis? Share your thoughts in the comments below! 👍 Like, Share, and Subscribe for daily market insights! 🚀 #StockAnalysis #MarketWatch #TradingEducation #ichimoku #midcap #smallcap #BSOFT
NSE:BSOFTLong
by nikunjbhadja
2
BSoft-ATH breakout retest of an investment stockNiftyIT sector is looking very weak as we have seen a breakdown of support. BSoft is one smallcap IT stock which has big potential to grow in future. Currently, stock is retesting its previous ATH and once stock goes above 650, a good swing trade can be initiated only if NiftyIT turns bullish. If we see a fall in this stock and you are a long term investor, best price to accumulate this stock is between 490-520. Stock becomes extremely weak below 380.
NSE:BSOFTLong
by chartistamey
Bsoft (Looks Ready for 690, 720)Bsoft will be giving a range breakout tomorrow if it closes above 654. Also, it might cross 50 EMA and 200 SMA level (655). Closing above 654 tomorrow, we shall see 690 level initially, and then 720. Stop loss can be placed at the low of tomorrow's closing candle (Friday, 7th June). Disclaimer: I am not a SEBI registered analyst. All the stocks are for educational purposes. Investors must consult a financial advisor before making any investment. It is not a buy or sell recommendation.
NSE:BSOFTLong
by onkarsoundankar
2
BSOFT - TREND CHANGED ?Symbol - BSOFT Birlasoft is engaged in Computer programming, consultancy, and related activities. It provides software development and IT consulting to its customers predominantly in Banking, Financial Services, and Insurance, Life Sciences and Services, Energy Resources and Utilities, and Manufacturing. The Company’s registered office is in Pune. It is part of The CK Birla Group, Birlasoft, comprising over 10,000 plus professionals. This stock has given great returns to investors as well as traders in last 1 year. This stock was buy on dips since May 2023 but right now as per technical chart & price action, I think trend is changed from buy on dips to sell on rise as there exists clear Head & Shoulders pattern on larger time frame. I have made short positions in futures already around 690 level & will find opportunity to sell it on each rise until it breaks 730-735 levels which is H&S neckline. So, My SL is placed above 735. Targets I'm expecting on downside will be 575 - 560 - 535. P.S. : Swap markets are now pricing in just one Fed rate cut in 2024. The Fed will keep the rate unchanged at its May 1 meeting. Powell is expected to tighten rhetoric and signal that there will be fewer rate cuts this year than previously expected. If this happens, This will result in strong profit booking in IT stocks specially mid and small caps. Disclaimer - Do not consider this as a buy/sell recommendation. I'm sharing my analysis & my trading position. You can track it for educational purposes. Thanks!
NSE:BSOFTShort
by akshit_official
2
BSOFT - Long Setup, Move is ON..NSE:BSOFT ✅ #BSOFT trading above Resistance of 790 ✅ Next Resistance is at 974 Related charts: Charts are self-explanatory. Levels of breakout, possible up-moves (where stock may find resistances) and support (close below which, setup will be invalidated) are clearly defined. Disclaimer: This is for demonstration and educational purpose only. This is not buying or selling recommendations. I am not SEBI registered. Please consult your financial advisor before taking any trade.
NSE:BSOFTLong
by Sandeep_Aggarwal
BSOFT - Long Setup, Move is ON..NSE:BSOFT ✅ #BSOFT trading above Resistance of 672 ✅ Next Resistance is at 790 Related charts: Charts are self-explanatory. Levels of breakout, possible up-moves (where stock may find resistances) and support (close below which, setup will be invalidated) are clearly defined. Disclaimer: This is for demonstration and educational purpose only. This is not buying or selling recommendations. I am not SEBI registered. Please consult your financial advisor before taking any trade.
NSE:BSOFTLong
by Sandeep_Aggarwal
BSOFT - Ichimoku BreakoutStock Name - Birlasoft Ltd Ichimoku Cloud Setup : 1). Today's close is above the Conversion Line 2). Future Kumo is Turning Bullish 3). Chikou span is slanting upwards All these parameters are showing bullishness at Current Market Price and more bullishness AFTER crossing 544 #This is not Buy and Sell recommendation to any one. This is for education purpose and a helping hand to learn trading in Market. #CloudTrading #IchimokuCloud #IchimokuFollowers #Ichimokuexpert I hope you all like my analysis. Please do share your thoughts into comment section. Please give a like, share & subscribe for daily analysis.
NSE:BSOFTLong
by nikunjbhadja