Tech Mahindra Limited (TECHM) Stock - Complete Technical Analysis - Oct 14, 2024

Tech Mahindra Technical Analysis: Key Levels and Market Insights

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investing in stocks involves risks, and it's essential to conduct thorough research or consult with a financial advisor before making investment decisions.

Tech Mahindra Limited is currently trading at 1,692.50, showing a slight dip of 0.99% from its recent high. The stock demonstrates a strong upward trend, having increased significantly from its 52-week low of 1,098.15. The bullish sentiment is supported by several technical indicators. The RSI indicates that the stock is approaching overbought territory, signaling potential upward momentum. The Stochastic and Stochastic RSI are also in the upper range, confirming this bullish trend.

Support levels are observed around the 1,640 and 1,605 areas, as indicated by recent price movements. The stock's resistance levels appear to be at 1,700 and potentially higher at 1,710. The average directional index suggests a weak trend, but the MACD level indicates that buying momentum is building.

The price volatility is evident from the average true range, suggesting active trading. Recent price movements have shown sudden surges, particularly evident on October 10, when the stock hit a 52-week high. Furthermore, the stock is trading above its key moving averages, including the 10, 20, and 50-day EMAs, which supports a bullish outlook.

Traders should watch for any sudden price drops, particularly if the stock tests support levels. If it manages to break above 1,700 with sustained volume, it may continue its upward trajectory. Conversely, if it falls below 1,640, it could signal a potential reversal or consolidation phase. Overall, maintaining a close watch on market sentiment and these key levels will be crucial for traders looking to capitalize on potential price movements.