A TECHNICAL UPDATE ON TECH MAHINDRA LTD—6.3.2023.

 

TECH MAHINDRA LTD

Open—1118--High—1119.60--Low—1082.45--Close—1085.15 on 3.3.2023.

Support: 1077/1036/1017.90/1016.40/1005/996.05/984.55/965/943.70/937/921/915/890/846/795/761/745.

Resistance: 1108/1120/1135/1152.50/1155/1165/1200/1237.30/1299/1324/1330/1361/1371/1406.95/1447/1470.40/1515/1526/1548/1575/1630/1638.25/1687.50/1755/1818/1838.

 (Bold and underlined figures are most important)

FOR TRADERS

The overall technical setup is weak and it is into deep corrective mode as it is way below its threshold point of 1515.50 and most importantly it is also into bear market territory as it is below its threshold point of 1470.40. The silver lining here is that after the fall from the all-time high of 1838 it is still above its two critical and most important support points of 1018 & 943.70(valid for 2023). Therefore price-wise it seems that it is in the process of bottom formation, but certain important technical indicators as of now are pointing that it still has a room for going down and if it breaks below 943.70 and sustain on the closing basis then it could drag it down 794 & 745 levels and finally sustain break below 745 on the closing can may drag it down to 500---475 levels.

In view of the above observation long trade can be tried if it holds 1082 for some time with a stop loss of 1070 or on decline near or within the range of 1018---944 with a stop loss of 920 or can be tried if it moves above 1165 and sustain on the closing basis with a stop loss of 1145. It is suggested to avoid fresh long trade below 944. Since it is in deep corrective mode one should be extremely alert and cautious in the long trade and do not trade without stop loss.

FOR INVESTOR

Kindly note that it is a good pedigree stock and one can get these types of stock cheaper only when they are technically weak. It is therefore suggested to accumulate the stock in a staggered manner on every deep decline day with time horizon of 3-5 years for decent gains. It is suggested to buy a token quantity at the CMP may be 5% to 10% of designated amount set aside for the stock. The other important buying range could be 1018---950 / 794---745 and 500—475, it is suggested to increase the % of buying on a steep decline day. It is important to mention here that as of now the range of 800---650 seems to be the worst price range for the stock on decline.

NOTE: - It is a technical assessment of the stock as of now, the technical interpretation changes with the price movement and time; therefore it needs periodic updating, which may please be noted.

Disclaimer:-The view expressed here are solely of the author and he is not at all responsible in any way for the outcome of the trade you enter based on the above view.

Kindly note that make your cost your stop loss in favorable trade and then trail it as the price move up/down to gain maximum profit and avoid losses. Use support and resistance levels as entry, exit, target and trailing stop loss points. DO NOT TRADE WITHOUT STOP LOSS.

Note: Price stated here are of spot market.

                          Contact me for strategic guidance to enter and exit trade.

 Thanks 

Narendra Kumar Surana

suranank@gmail.com

Mobile—8240951127/9831313654.