Tech Mahindra has been forming Lower highs and equal lows in the weekly charts lately. It is also trading below all the major Moving averages making it a weak stock technically.
One important think to observe here is the speed and the time which the bears have taken to bring the market down is less than what bulls are taking to bring it up, which generally happens in a down trending stock. So this makes our decision all the more supportive.
Also the IT sector has been under performing since quite a while now.
Short below 400 for a target of 350, 310. Stop loss is a must in trading. That I will update when it breaches 400 levels.
There are chances that the stock might bounce from the support, in that case I will avoid the trade unless there is a strong bullish candle with exceptional volumes.
Comments
Anilkulkarni
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Tech Mahindra being pulled down in anticipation of poor results. Any move (upside/downside) will come after results. My assumption -it will be taken upside first upto 450/470 level and then if results are bad then will short. Recent high was 442. Result by end of month. It is already beaten down.
getsetrade
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@Anilkulkarni, Hi, thanks for sharing your views. If the support is held with a bullish green candle, traders can go long with the low of the candle or 400 as SL. The best we can do is just follow the market.