The stock of Tech Mahindra, since mid-August, has been in a sideways crawl. It has largely been oscillating between ₹1,580 and ₹1,660. However, early this week, the stock broke out of ₹1,660, opening the door for further appreciation. Although the scrip moderated post the breakout, the rebound happened on Thursday indicates that the bulls are in the driving seat. So, the outlook is positive, and we expect the stock to touch ₹1,800 in the near-term.
Therefore, traders can buy the shares of Tech Mahindra at ₹1,700 and accumulate if the price dips to ₹1,680. Place initial stop-loss at ₹1,640. When the stock touches ₹1,740, revise the stop-loss to ₹1,700. Move the stop-loss further up to ₹1,740 when the price hits ₹1,780. Liquidate the position at ₹1,800.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)