Trading strategies: Mehul Kothari recommends buying Tech Mahindra and selling SBI
Buy near: Rs 1,030
Objective: Rs 1,100
Stop Loss: Rs 990
After a corrective move followed by some consolidation, Tech Mahindra stock is gearing up for further upside.
On the daily chart, it confirmed a higher bottom formation and this indicates a reversal. At this point, the stock is poised to take another break above Rs 1,045.
Thus, we advise traders to buy the stock near Rs 1,030 for an upside target of Rs 1,100 in the coming sessions.
Sell below: Rs 530
Objective: Rs 510
Stop Loss: Rs 540
Recently, SBI stock rebounded more than 10% from lows of Rs 475 without any significant correction.
At present, it is hovering near the multiple highs area of Rs 540. On the daily scale, we are seeing a Doji candlestick pattern which indicates the possibility of cooling.
Thus, we advise traders to sell the stock below Rs 530 in futures for a bearish target of Rs 510 in the coming sessions.
(Mehul Kothari – AVP – Technical Research, Anand Rathi Shares & Stock Brokers. Views are personal).