Is it the right time to buy Tech Mahindra ?

Is it the right time to buy Tech Mahindra ?

Techmahindra technical views

Tech Mahindra shares is a good buy considering the risk:reward ratio of 1:2.5 it is offering and the likely holding period is just couple of months time frame.

Tech Mahindra shares have fallen sharply right from the beginning of 2015 and the fall persisted till it reached the 2014 low levels of Rs. 422 (which happens to be trend line resistance turned support) in February. The historic support at 422 levels offered a good support to the stock and it managed to bounce from the lows  to 480 and in due course started to form Fan Lines.

Once the share price breaks the resistance of 480 it can run up to Rs.565 levels by May end; on the other side place a stop loss 3% below 422 levels which is roughly Rs. 410.

The fundamentals of the stock is intact and with the results due in this month, the necessary fuel to reach the above said target is expected from the beat-the-expectation results.

Written by me in Quora on 6th Apr, 2016.

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