Tech Mahindra: Revisiting the AB=CD Setup

We had flagged

AB=CD harmonic setup on 11 September, with the initial objective being the C-point near 1,649. The stock went on to test 1,633 the following day, coming close to that objective. Since then, the stock has corrected and is now back near the pattern's PRZ (Potential Reversal Zone) at 1,498, trading around 1,551.8, putting it once again in a zone that presents a reasonable risk-reward setup on the pattern's terms. Resistance: 1,649, the C-point, then 1,695. Support: 1,498, the PRZ, then 1,470-1,480 as an extended cushion. RSI at 47.73 sits in the mid-range, neither confirming strength nor showing weakness. Whether the 1,498 PRZ holds once again and the stock moves higher toward the C-point, or whether this zone gives way this time, is what will determine how the pattern plays out from here. A harmonic pattern's PRZ can be tested more than once — each retest of the same zone is a fresh data point on whether the level still holds. Disclaimer: This is for educational purposes only and is not investment advice. Please consult your financial advisor before making any investment decisions. SEBI Registered Research Analyst — INH000025212.