TECHM - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 4.2

📊 Analysis Summary

TECHM (Tech Mahindra) shows several signs of being a good swing trade candidate, especially for a short-term bounce. Here's a breakdown

✅ Bullish Indicators for Swing Trade

RSI: 24.4

Extremely oversold territory (<30), suggesting a potential rebound.

MACD: -43.2

Deeply negative, but this could indicate a bottoming-out phase. Watch for a crossover signal.

Volume vs Avg Volume

Slightly below average, but still healthy. A spike in volume near support could confirm reversal.

Low Debt (D/E: 0.07)

Financially stable, which reduces downside risk.

Dividend Yield: 3.10%

Attractive for holding during volatility.

⚠️ Cautionary Signals

Current Price: ₹1,454 vs DMA 50/200 (₹1,578 / ₹1,562)

Trading below both moving averages — bearish trend. Needs confirmation of reversal.

PEG Ratio: -2.93

Indicates poor earnings growth relative to valuation. Not ideal for long-term, but swing trades focus on price action.

EPS vs P/E

P/E of 31.6 is slightly above industry average (29.1), suggesting mild overvaluation.

Qtr Profit Decline

Slight drop in PAT from ₹1,142 Cr. to ₹1,129 Cr. — not alarming, but worth noting.

🎯 Optimal Entry Price

Entry Zone: ₹1,420–₹1,440

Close to recent support and RSI oversold levels. Watch for bullish candlestick patterns or MACD crossover confirmation.

🚪 Exit Strategy (If Already Holding)

Exit Target: ₹1,570–₹1,600

Near DMA 50 and 200 resistance zones. Consider partial exit here.

Stop Loss: ₹1,400

Below recent support and psychological level. Protects against further downside.

Would you like a chart-based technical setup or backtest this strategy on historical data?

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