Trade Idea of The Day - Tech Mahindra Ltd Target Rs. 66 - Religare Broking Ltd
Tech Mahindra Ltd
BUY 28 JUL 1400 PUT Entry Range 38 – 42 Target 66 Stop Loss 28
Rationale
1. TECHM continued to witness a bearish undertone with a multiple rejection near 100-DEMA zone and recently traded below both the 20-DEMA and 50-DEMA levels, indicating sustained selling pressure in the near term. The inability to reclaim the key moving averages keeps the short-term trend weak.
2. On the daily chart, the stock remains below the long-term descending trendline, which continues to act as a major resistance zone around 1480-1500. Any pullback towards this region may attract fresh selling pressure.
3. Momentum indicators also indicate weakness, as the MACD remains in negative territory while the RSI has slipped below the 50 mark, suggesting fading buying strength and a continuation of the bearish bias.
4. As long as the stock sustains below 1450, the downside pressure may persist for the near term with immediate downside target of 1400 and below this level negative trend may further extended towards 1360.
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