TechM offers fresh entry opportunity, can test Rs 1,890: Sumeet Bagadia, Choice Broking

Sumeet Bagadia, Executive Director at Choice Broking, on Wednesday recommended a ‘Buy’ rating on Tech Mahindra Ltd (TechM) amid a bullish setup on technical charts. He recommended accumulating the IT stock at around Rs 1,640 and on declines up to Rs 1,610, with upside targets of Rs 1,810 and Rs 1,890, respectively.

On Wednesday, the scrip settled at Rs 1,625.10 on NSE, down 1.19 per cent. Bagadia said TechM is displaying strength within a well-defined long-term uptrend. 

"On the weekly chart, the stock is forming a consistent higher high and higher low structure, reflecting sustained buying interest and positive trend alignment. It is trading comfortably above its key 20-, 50-, 100-, and 200-week exponential moving averages (EMAs), highlighting strong underlying momentum and confirming the broader bullish setup," Bagadia said. 

After witnessing a sharp upside rally in recent weeks, he believes the stock is now undergoing a healthy retracement, which appears constructive rather than reversal-driven. 

"Such pullbacks within an established uptrend often provide fresh entry opportunities," he said.

On the downside, the Choice Broking's Executive Director sees immediate support for TechM near Rs 1,610. This is where accumulation interest has been visible, he said.

Momentum indicators remained supportive, with the weekly RSI at 56.45, sustaining above mid-levels and indicating continued strength.

"Based on the technical structure, a buy strategy can be considered at Rs 1,640, with additions on dips towards Rs 1,610. A breach below Rs 1,525 would act as a key warning level temporarily challenging the positive setup and warranting a cautious approach," he said.