{"id":11045,"date":"2022-11-15T15:59:40","date_gmt":"2022-11-15T10:29:40","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=11045"},"modified":"2022-11-18T10:46:17","modified_gmt":"2022-11-18T05:16:17","slug":"tech-mahindra-will-the-it-stock-outperform-soon","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/tech-mahindra-will-the-it-stock-outperform-soon\/","title":{"rendered":"Tech Mahindra: Will the IT Stock Outperform Soon?"},"content":{"rendered":"\n<p>The market is showing extraordinary strength, and most counters have recovered from the extreme lows and started an upward journey. A couple of sectors are still laggards, and one of them is IT. Herein I share my technical view on one of the IT companies, <a href=\"https:\/\/www.tickertape.in\/stocks\/tech-mahindra-TEML?checklist=pro&amp;utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=kunram\" target=\"_blank\" rel=\"noreferrer noopener\">Tech Mahindra<\/a>.\u00a0<\/p>\n\n\n\n<p class=\"sc-embed\" data-width=\"500px\" data-orders=\"%5B%7B%22quantity%22%3A10%2C%22ticker%22%3A%22TECHM%22%7D%5D\" data-cardsize=\"big\" data-withtt=\"true\" data-withsearch=\"true\" style=\"width:500px;min-height:300px;display:flex;align-items:center;justify-content:center\"> <strong>loading widget to trade TECHM<\/strong> <\/p> <script async=\"\" src=\"https:\/\/www.gateway-tt.in\/assets\/embed.js\"><\/script>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/tech-mahindra-will-the-it-stock-outperform-soon\/#Monthly-Price-action\" title=\"Monthly: Price action \">Monthly: Price action <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/tech-mahindra-will-the-it-stock-outperform-soon\/#Monthly-Ichimoku\" title=\"Monthly: Ichimoku \">Monthly: Ichimoku <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/tech-mahindra-will-the-it-stock-outperform-soon\/#Weekly-Price-action-and-Fibonacci\" title=\"Weekly: Price action and Fibonacci\">Weekly: Price action and Fibonacci<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/tech-mahindra-will-the-it-stock-outperform-soon\/#Weekly-RSI\" title=\"Weekly: RSI \">Weekly: RSI <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/tech-mahindra-will-the-it-stock-outperform-soon\/#Weekly-MACD\" title=\"Weekly: MACD\">Weekly: MACD<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/blog\/tech-mahindra-will-the-it-stock-outperform-soon\/#Weekly-Bollinger-Bands\" title=\"Weekly: Bollinger Bands\">Weekly: Bollinger Bands<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/blog\/tech-mahindra-will-the-it-stock-outperform-soon\/#Ratio-Chart-Tech-Mahindra-and-Nifty-IT-Index\" title=\"Ratio Chart: Tech Mahindra and Nifty IT Index\">Ratio Chart: Tech Mahindra and Nifty IT Index<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/blog\/tech-mahindra-will-the-it-stock-outperform-soon\/#Ratio-Chart-Tech-Mahindra-and-Infosys\" title=\"Ratio Chart: Tech Mahindra and Infosys \">Ratio Chart: Tech Mahindra and Infosys <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/blog\/tech-mahindra-will-the-it-stock-outperform-soon\/#Ratio-Chart-Tech-Mahindra-and-HCL-Tech\" title=\"Ratio Chart: Tech Mahindra and HCL Tech \">Ratio Chart: Tech Mahindra and HCL Tech <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tickertape.in\/blog\/tech-mahindra-will-the-it-stock-outperform-soon\/#Putting-it-all-together\" title=\"Putting it all together\">Putting it all together<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Monthly-Price-action\"><\/span><strong>Monthly: Price action<\/strong><br><img loading=\"lazy\" decoding=\"async\" alt=\"pasted-image.tiff\" src=\"https:\/\/lh6.googleusercontent.com\/6FNNx-q7xKuvIB2XvyFk_VFXMhDPDhfWxiCibJK8MAVlnpK33CprO348flACacUcs7hjfUiOFIgL89IeuAr3yaMWXbnedAf5-rCH3NsOsnl_rCpvN_9JYFeOISY0OT0W840r60qy1on55rRu-W4Q4GBmSP136gHD4r2y5ObVqcGSTbQ6yMtBBoeEQWQn6VKiSBEqgrbkzQ\" width=\"643\" height=\"306\"><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Since its inception, it seems that the price was continuously taking the resistance of the white trend line. It confirmed the breakout of the trend line during 2021, and since then, the trend line resistance is now acting as support. This change in polarity is of great importance in confirming bullish behaviour going forward. The price is right onto the support level, making the deal extremely favourable from a risk-reward perspective.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Monthly-Ichimoku\"><\/span><strong>Monthly: Ichimoku<\/strong><br><img loading=\"lazy\" decoding=\"async\" alt=\"pasted-image.tiff\" src=\"https:\/\/lh6.googleusercontent.com\/bPtJDBBHEU-JIsWcIbT8GEO2Lju4NFEfB2_O2GYC65Qfp6moI_ivHmPdKnfPDa7NFcOfaL9lfijFvPVC28EXm3u-teHunOYOkgN1dWZxo3Nw_FFp6lKJ7Wxe7SQr2z6XfHdzD_fSMde3BYdLoMWDQk7AUFkgiixAbXxirbYFvbobT8A-T6-pByHGBwOZR1U5Xu_IWRXJ2A\" width=\"643\" height=\"306\"><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>On the <a href=\"https:\/\/www.tickertape.in\/blog\/ichimoku-cloud\/?utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=kunram\" target=\"_blank\" rel=\"noreferrer noopener\">Ichimoku<\/a> front, it&#8217;s clearly visible that the prices decisively stated above the Kumo cloud since 2012. At present, the price is well above the cloud, the future cloud is also bullish, Chikou span is well in open space and Tenkan &#8211; Kijun is also holding up the trend well. Overall, all formations are attractive to stay bullish.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Weekly-Price-action-and-Fibonacci\"><\/span><strong>Weekly: Price action and Fibonacci<\/strong><img loading=\"lazy\" decoding=\"async\" width=\"643\" height=\"306\" alt=\"pasted-image.tiff\" src=\"https:\/\/lh4.googleusercontent.com\/nnOquZ55UZQKZMgK0l10SekIOYAhyOav1PMmbBjZuW45l1UcN3y5UJNDBET3_NSZZlqeePhWAmZsUCb2U32akqTrEs7xgPneQH9zRaXdZz-zEVx0lwdUcrcPdHAUlFUGHOWUs9-4Kr3MfHQZ1EHfHMlO1CjSHg5n3D9SsABBBsUJ_7cz8yXdTZcSdGffY6bNqy3tFMU9Ow\"><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The last advance of the price action started from the low of 2020 and lasted till the beginning of 2022. After forming the head and shoulder formation, the price started declining. The target of the bearish pattern was perfectly achieved. The price also took the support of the white Trend line, which coincides with the 61.8% retracement level of Fibonacci. All multiple observations make the counter worth looking at from a long-term perspective.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Weekly-RSI\"><\/span><strong>Weekly: RSI<\/strong><br><img loading=\"lazy\" decoding=\"async\" alt=\"pasted-image.tiff\" src=\"https:\/\/lh5.googleusercontent.com\/6YVlPF7DfvArYKSnFucg6csfjDH_QcDOYUh7rzrk8BkSMHduZgeLZRGplmtjsqBRmJM5xbs9B4n0KA3lwCN23HGqbNpx-JE-tNmqkfJ6OISXbPiyO7nDR40JveycozItHmM09DOjh0aeFvUALk-UW2zd0m8HlmXlYUnuDH2ehd8mn2dMhH7qX_SMNfrCRO7JqAbmP4ZM3g\" width=\"643\" height=\"305\"><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><a href=\"https:\/\/www.tickertape.in\/blog\/relative-strength-index\/?utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=kunram\" target=\"_blank\" rel=\"noreferrer noopener\">Relative Strength Indicator (RSI)<\/a> is a leading <a href=\"https:\/\/www.tickertape.in\/blog\/momentum-indicator\/\">momentum indicator<\/a> and serves the purpose of understanding the strength in the counter on a relative basis. During the recent decline, the weekly charts RSI entered the extremely oversold zone. After staying there for a couple of weeks, it came out of it decisively and formed higher tops and higher bottoms. Presently at 46, it is inching upward and about to cross the 50 mark. Such an overbought zone is seen after many years, and now the counter is showing the strength getting accumulated. Going forward, there is a bright possibility that the counter may surprise the upside.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Weekly-MACD\"><\/span><strong>Weekly: MACD<\/strong><img loading=\"lazy\" decoding=\"async\" alt=\"pasted-image.tiff\" src=\"https:\/\/lh5.googleusercontent.com\/kgkwMxyreZgFazsEJhb5a-bmBH_h7tsRro8_k8wTfAVKrzIUdB3rdgrBjTQtNDvkKxMdHIKHE3ZjF5sL_oUm_i3R5FFxhAiMvtRoqGPAfw5algaGaO0yD05MTkCi73qwCuu5wIe931rUyJWBe7NCvS3K8WrLn495BOkpVkarUXX33o7AlvMExZL7hY7ug_82QgebXTp_Gw\" width=\"643\" height=\"304\"><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><a href=\"https:\/\/www.tickertape.in\/blog\/moving-average-convergence-divergence\/?utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=kunram\" target=\"_blank\" rel=\"noreferrer noopener\">Moving Average Convergence Divergence (MACD)<\/a> is a lagging indicator. There are multiple ways of looking at <a href=\"https:\/\/www.tickertape.in\/blog\/moving-average-convergence-divergence\/\">MACD<\/a>. Here on the weekly chart, it is the first time since the listing date that the MACD has reached the extreme low point on the chart and now reversing from those levels. MACD is pointing upward, confirming the gathering strength in the counter. More strength can be expected once the MACD crosses the zero line on the upside.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Weekly-Bollinger-Bands\"><\/span><strong>Weekly: Bollinger Bands<\/strong><img loading=\"lazy\" decoding=\"async\" alt=\"pasted-image.tiff\" src=\"https:\/\/lh4.googleusercontent.com\/FuEbWwPERkn9zMVkeKbWoXJ6bernpsjYhJkHYFZvZf8W_NBMz-prwkUqrMJh0pDQ4o5bdHsXSmAPfaYwkgCds_CbyDa7xYxqrGK0V9kpeq29tcs0R6j0WnJ9AE-DB_ikF48Y_wBaS93hRPpGjR4Gue-SXCAVTJXlMt83PI3Gj8_kuOvpNUUdsuWR5xOPvRl-NQlhmdvzrQ\" width=\"643\" height=\"305\"><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>After extreme <a href=\"https:\/\/www.tickertape.in\/blog\/volatility\/\">volatility<\/a>, the broadening bands started squeezing. The <a href=\"https:\/\/www.tickertape.in\/blog\/bollinger-bands\/?utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=kunram\" target=\"_blank\" rel=\"noreferrer noopener\">Bollinger Band<\/a> indicator has great importance in squeezing bands. It shows the likely emergence of a new release soon. Considering the other observations discussed earlier, we can expect the breakout anytime soon. The squeezing band breakout can be confirmed once the price crosses the higher band of Bollinger. Upon trigger, the rally can be really fast. It\u2019s worth keeping an eye on : )<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Ratio-Chart-Tech-Mahindra-and-Nifty-IT-Index\"><\/span><strong>Ratio Chart: Tech Mahindra and Nifty IT Index<\/strong><img loading=\"lazy\" decoding=\"async\" alt=\"pasted-image.tiff\" src=\"https:\/\/lh6.googleusercontent.com\/ubhggDkJbAUsUkv2y4yEMAznxSNVIvG19utglKmipqKn2AY4eWTOZFoDHZv_rE3ONvsQcNnGGlZzLR_ZGSygR6Cm-0Iy7YsYv4mDZLT8_RcddVb-Axx1-RedFpZ3IrTqxSzCp73OmtS4s8xnK2B6H7kL9g8QtMSj9CeXiYgXbSxk8Zr2dG98RjKR5b6F1L9ox6f5A0tUvA\" width=\"643\" height=\"303\"><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Let&#8217;s now look at the ratio chart of Tech Mahindra and the <a href=\"https:\/\/www.tickertape.in\/indices\/nifty-it-index-.NIFTYIT?utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=kunram\" target=\"_blank\" rel=\"noreferrer noopener\">Nifty IT index<\/a>. As we can see, the ratio chart is forming a symmetrical triangle formation, and at present, it is right onto the support zone. Looking at the chart, it seems that the downside on that is very limited as the trend line has been respected for many years (9 yrs). One can expect a bounce on the chart, which confirms the likely outperformance of Tech Mahindra over the Nifty IT <a href=\"https:\/\/www.tickertape.in\/blog\/stock-market-index\/\">index<\/a>.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Ratio-Chart-Tech-Mahindra-and-Infosys\"><\/span><strong>Ratio Chart: Tech Mahindra and Infosys<\/strong><br><img loading=\"lazy\" decoding=\"async\" alt=\"pasted-image.tiff\" src=\"https:\/\/lh5.googleusercontent.com\/QvUahkYXaBmoIpmDwMVMSOxpFJnZX9gW1srG_tdKEOvVnQOlwH668J7STA2c0Eg6wgB_D3O11zty1faAEkmV1YctrkRK3h5y9nQm6hNi_n2xTHTEMd5SMnSRzDs3q7aYEPhA8rYLNZ8AtziIman6Ln4NytKNu9GSt-VaVKNAGQ664Kbg8Clb5ENAw03e4fAUDm5kGo30-Q\" width=\"643\" height=\"305\"><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Tech Mahindra, for a long time, has not been the darling of the market over Infosys and other IT counters. Herein we look at the ratio chart of Tech Mahindra and <a href=\"https:\/\/www.tickertape.in\/stocks\/infosys-INFY?checklist=pro&amp;utm_source=blog &amp;utm_medium=gart&amp;utm_campaign=kunram\" target=\"_blank\" rel=\"noreferrer noopener\">Infosys<\/a>. An almost similar chart like Tech Mahindra and Nifty IT, this ratio chart also forms a falling wedge. Looking at the historical trend line support, the downside seems very limited, and the immediate bounce is very much likely, which confirms the likely outperformance of Tech Mahindra over Infosys. Going forward, the longer time outperformance may also come into reality.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Ratio-Chart-Tech-Mahindra-and-HCL-Tech\"><\/span><strong>Ratio Chart: Tech Mahindra and HCL Tech<\/strong><br><img loading=\"lazy\" decoding=\"async\" alt=\"pasted-image.tiff\" src=\"https:\/\/lh5.googleusercontent.com\/Hvbmg_6N0rnrpsDmz7QVevaG_Rb5DDy9M9I-W3KgJBgj-tSx_I56I1euV4Bj93ee8e8WhbxKpupN9zDy8Z70OhjlWA-dKrpXedj5OC0f7SsHzFILcNNtLbDx1xqymYbzW5vt0pMpnvDzA70AEEm9aApmPVTAjfawbPBhxcdNdJ_76YnEP2qOa9PTrO_q9tsns4uJZYoFGA\" width=\"643\" height=\"305\"><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Let&#8217;s also look at one more show chat of Tech Mahindra with <a href=\"https:\/\/www.tickertape.in\/stocks\/hcl-technologies-HCLT?checklist=pro&amp;utm_source=blog &amp;utm_medium=gart&amp;utm_campaign=kunram\" target=\"_blank\" rel=\"noreferrer noopener\">HCL Technologies<\/a>. The rising trend line support is right around the corner for the price action right now. Looking at the past four years, trend line support, the bounce from here on is very much likely and supporting the bullish view on Tech Mahindra.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Putting-it-all-together\"><\/span><strong>Putting it all together<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>After looking at the monthly chart with change in polarity, monthly Ichimoku cloud support, future bullish cloud, weekly trendline support with 61.8% Fibonacci retracement support, and extremely oversold RSI reversal, one can say all of them are making the counter very much attractive. Further, MACD reversing from lifetime low levels, squeezing <a href=\"https:\/\/www.tickertape.in\/blog\/bollinger-bands\/\">Bollinger bands<\/a> suggests the same. Tech Mahindra ratio chart with Nifty IT index, Infosys, and HCL Technologies shows the likely outperformance of Tech Mahindra from hereon.&nbsp;<\/p>\n\n\n\n<p><em>Statutory Disclosure: Kindly note that this update is only for educational purposes. It is safe to assume that my personal position, my fund\u2019s position, my client\u2019s position and my relative\u2019s position may be open at the counter. Prefer to take the advice of your financial advisor before initiating any position.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Read Kunal Rambhia\u2019s technical analysis on Tech Mahindra. Find out if the IT stock will outperform soon.<\/p>\n","protected":false},"author":73,"featured_media":11047,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"no","footnotes":""},"categories":[1770],"tags":[],"acf":[],"modified_by":"Anjali Chourasiya","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/11\/15-Nov-2022-Techical-Analysis-on-Tech-Mahindra-Guest-20.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/11045"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/73"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=11045"}],"version-history":[{"count":5,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/11045\/revisions"}],"predecessor-version":[{"id":11080,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/11045\/revisions\/11080"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/11047"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=11045"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=11045"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=11045"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}