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Technical Observations

* The IT index after the last five months corrective decline is seen rebounding from near the key support area thus provides favourable risk reward set up for most of the IT stocks. One of the preferred pick within the IT space is Mphasis which we expect to outperform

* The stock has generated a breakout above the falling channel containing last two months decline signaling pullback is expected from extreme oversold territory thus offers fresh entry opportunity

* We expect the stock to continue with its last three sessions up move and head towards | 2730 levels in the coming weeks as it is the 38.2% retracement of the decline of last two months (| 3465-2262)

* Among the oscillators the daily 14 periods RSI has recently generated a buy signal and is seen sustaining above its nine periods average as it rebounds from the extreme oversold territory thus supports the positive bias.

Buy Mphasis Ltd @ 2560.00-2605.00 TGT 2730 SL 2468

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