Nobody likes IT stocks as of now and there is a good reason...who likes such price action. Here's Tech Mahindra daily chart
But no matter how bad the market is - one should never stop looking for interesting stock behavior.
Here's one Hint: Just look at the pick up in trading Volumes in Tech Mahindra stock in last few days. It smacks of Institutional interest in the stock.
But what makes the Tech Mahindra stock even more interesting: The weekly chart
Tech Mahindra has a solid support around price of 417 and it goes back to Jan 2014. No wonder: "BUY LOW SELL HIGH" crowd is accumulating the stock at levels near 417. It seems there is a hope that the stock will hold this level and once things become better, this stock will give handsome gains in 2017. This looks like the thinking of some market participants as of now. Will that turn out to be true - only time will tell. But that's how strategies are made
Everybody starts with an hope and assumption and then more people join in. All hope and assumptions don't succeed but that does not mean - people don't give a try.
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