synopsis

Persistent Systems gained over 10% in the past week. SEBI analyst is eyeing a breakout if the stock sustains above these key resistance levels.

Persistent Systems' stock surged 3% following its robust fourth-quarter results, gaining market attention.

The IT firm's upbeat performance and optimistic management guidance are fuelling positive sentiment among investors.

The stock has seen 9% gains in the past week. 

For Q4 FY25, Persistent reported a 25.5% year-on-year jump in net profit to ₹395.76 crore, while revenue rose 25% YoY to ₹3,242 crore. 

The strong financials were supported by deal wins in digital engineering and cloud services, two areas where the company continues to deepen its capabilities.

Strong forward guidance backs the numbers. CEO Sandeep Kalra reaffirmed the company's ambition to reach $2 billion in revenue by FY27, stating that the company remains on track through consistent execution and deal momentum.

Data on Stocktwits shows that retail sentiment has turned 'bullish' from 'neutral' a week ago amid high message volumes. 

Persistent sentiment and message volume on April 25 as of 1:30 pm IST. | source: Stocktwits

SEBI-registered analyst Prameela B views Persistent Systems as technically strong following its recent earnings report. She notes that the stock demonstrates strength above the ₹5,320 level, provided it sustains this price. 

According to her analysis, Persistent is setting up for a potential breakout, and she recommends waiting for a clear breakout above ₹5,300 accompanied by strong trading volumes before considering a long position. 

Her ideal entry point would be above ₹5,320, with a stop-loss placed below ₹5,150 on a daily closing basis. For targets, she identifies ₹5,500 and ₹5,700 or higher as achievable levels if the breakout materialises.

Persistent stock has fallen 18% year-to-date (YTD).

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