There is clear distribution seen in Tech Mahindra daily charts with clean divergence on RSI,
As we can see on chart there is very good support around 720 levels which was earlier a strong resistance, also volume has spiked up recently during last couple of down days.
TechM has been very resilient recently and despite the steep fall in Nifty we haven't seen much...
Stock has been following the range bound uptrend which seems to be stalling at 745 750 levels.
Given the sharp recovery in rupee IT stocks may see selling pressure at higher levels.
Sell below 737 Stoploss 747 target 721
Applied Fibonacci levels to IT index.
Index seems to be closing above it short term resistance oh 16086 level. A strong breakout above previous highs of 16130 will be a buying opportunity in Tech stocks like Techm Infy TCS Wipro Mindtree which have been strong.
Weaker rupee may be a trigger. But one should wait for a breakout and not hurry since they have rallied...
Stock is closely following the trend line and up move seems to stall at 780.
A break above 780 with volumes is a good buying opportunity with Target of 803 and a breakdown below the trend line which comes around 758 levels may see selling pressure till 745