Shares of Tech Mahindra Ltd fall as much as 3.7 per cent to Rs 744.2 , its lowest since February 5.
The software services provider;s reported 7.4 per cent fall in March-quarter profit, fell short of analysts’ estimates. The company’s total tax expense rose 25.8 per cent.
In comparison, rival Tata Consultancy Services Ltd posted a 17.7 per cent jump in quarterly profit, while MindTree Ltd reported an 8.8 per cent surge in profit.
The stock formed a double top reversal pattern and cuts below it's support line at Rs 761.6, a close below which may result in the reversal of the uptrend. The RSI line had cut below the 40 level on Monday, which seen as a bearish sign. The MACD is negative and below its signal line
In the near term, stock has support at its 200-day exponential moving average and at Rs 730.9, the 23.6 per cent Fibonacci retracement level.
About 2.2 million shares change hands in early trading, compared with 30-day average of 2.4 million shares.
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