On Friday, June 21, 2024, shares of this semiconductor company (MosChip Technologies) reached a new high of Rs 320.80, having already soared by nearly 148 percent in June. The stock ultimately closed the day Friday five percent down at Rs 281, as investors took profits after the incredible surge.

The stock of semiconductor and system design services provider MosChip Technologies has surged more than 200% so far this quarter. By contrast, within the same time frame, the NSE Nifty 50 index has increased by 5.3%.

The approval of the company's application under the Semiconductor Design-Linked Incentive (DLI) program is credited with the recent rapid surge at the counter.

Moshcip's application for the Semiconductor Design-Linked Incentive (DLI) initiative of the Government of India to create a smart energy meter integrated circuit (IC) for the Indian and international markets was accepted by the Ministry of Electronics and Information Technology, Government of India (MeitY).

Over a five-year period, the Design Linked Incentive (DLI) program seeks to provide financial incentives.

In the meantime, MosChip Technologies has shown a dramatic decline in Q4 net profit, from Rs 21.60 lakh in the equivalent period last year to Rs 1.10 lakh for the quarter ending March 2024. On the other hand, operating revenue increased 17.3% YoY to Rs 5.31 crore from Rs 4.53 crore during the same period.

In light of this, the following is a prognosis for the MosChip stock's expected future trajectory.

MosChip Technologies

Last closed at 281 rupees.

Potential Gains: 40.5%

Support: 235 and 277 rupees

Resistance: 320 and 330 rupees

The stock is moving up and down across a number of time periods. According to the short-term chart, as long as the price stays above Rs 277, the bias is probably going to stay optimistic. On the other hand, as long as the stock stays above Rs 235 levels, the bias is expected to stay bullish in the long run. In the immediate term, the stock may consolidate and test the expected support levels due to the overbought circumstances across time-frames. After that, the stock might try to continue rising, with a higher target range of Rs 370 to Rs 395. It is reasonable to anticipate interim resistance between Rs 320 and Rs 330.