Tech Mahindra was in a very strong Bull market between 2012 and 2015. Here's the weekly chart
As you can see in the chart above - the stock moved up 4x between Jan 2012 and Jan 2015. It was a phenomenal rally with just one decent correction to 50-week moving average. But then as it always happens, stocks run ahead of itself and then they go in for deep price and time correction so that earnings can catch up. The same happened with Tech Mahindra stock.
Here's how Tech Mahindra stock weekly chart looks like right now
As you can see in the chart above - the stock has now corrected significantly and is at 200-week ma. Last week - it did bounce from 200 week moving average. Technically, the stock appears attractive and can make a grand comeback if it sustains here. Any breakdown below 200 week ma will mean that market has some serious doubts and something can be struturally wrong with the company
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Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers