Tech Mahindra - Increased activity expected

I surely see a smile on your faces .... obviously . . .afterall you'll have enjoyed the super-normal profits on the back of highly positive market sentiments - the so called 'Feel Good' factor..... !!!

It became over hectic for me too and so could not blog for the past few days...

Well, the euphoria which got created seemed as if the Indian economy was the only one in the world which returned to the high GDP growth... well at least that is what the market seems to be expecting... Time will tell whether we were right about this optimism. . . .

Any way, in this highly overbought market, one stock which has attracted my attention is TECH MAHINDRA.



One observes a rounding bottom formation on the charts and the break out above recent resistance level of 410 occured today.

I would expect increased buying interest in the stock and the first target shoul dbe near to Rs 500 and then Rs 520 ... Keep stoploss at Rs 360...

Moreover the Satyam Open Offer date too is nearing - which may increase trading and investor interest in the stock.

Happy trading!!

CA Rajiv D Khatlawala
Head of Research & Training
JHAVERI Securities Ltd.
Baroda