Tech Mahindra forms doji candle on weekly scale
The stock had witnessed symmetrical triangle breakout at around Rs. 720 level on January 23, 2019 and thereafter stock had saw almost 16 per cent upward move. At present, the stock had formed doji candle on weekly scale. A doji is formed when the opening price and closing price are equal. If the doji occurs alone, it is a signal that there is indecision and must not be ignored.
Among the momentum indicators, the daily MACD stays bearish as it is trading below its signal line. However, the negative divergence in daily RSI and daily Stochastic is also suggesting that the upside is almost limited till price close above all time high level.
In the near term, the zone of Rs. 815 to 800 is likely to act as a major support as is a confluence of upward sloping trendline and short-term 20-day EMA. Failure to hold this support would lead to further correction up to the 50-day EMA, which is currently placed at Rs. 766 level. While on the upside, above all time high of Rs. 840 level, the stock is likely to extend its northward journey.
On Friday, the stock of Tech Mahindra Limited closed at Rs. 831 per share, up by 0.85 per cent. The stock opened at Rs. 831 per share and hit an intraday high of Rs. 836.50 and a low of Rs. 829.10 per share on NSE.