Stocks

Tech Mahindra (₹600): Buy

Akhil Nallamuthu BL Research Bureau | Updated on July 13, 2020 Published on July 14, 2020

The stock of Tech Mahindra witnessed sluggish price action last week. But on Friday, the stock took support of 21-day moving average at ₹560 and recovered slightly. Following this, the stock rallied strongly yesterday and closed at an important level of ₹600. The stock, which has been forming higher lows in the last one month, is exhibiting a bullish bias where it is likely to advance from current levels.

After seeing a considerable fall in March, when it lost a little over 44 per cent, bottomed out around the psychological level of ₹500. Since then, it has been largely moving in a sideways trend but with a bullish bias. Now the stock is showing a fresh positive momentum. Substantiating this, the daily relative strength index is showing a fresh uptick and it stays in the positive zone. Also, the moving average convergence divergence indicator in the daily chart is in the upward trajectory. Considering these factors, traders can initiate fresh long positions in the stock with stop-loss at ₹580. The near-term targets can be ₹635 and ₹660.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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Published on July 14, 2020
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