Tech Mahindra Signals Bullish Breakout Setup

closed at ₹1,640.90, gaining 3.53% on the daily chart. The stock has shown a strong recovery from the recent correction and is now trading above its short-term moving averages, indicating improving buying interest. Technically, the stock is trading above the 10-day EMA at ₹1,602.80 and 20-day EMA at ₹1,600.70, while the 50-day EMA is placed at ₹1,564.00. This alignment supports a positive short- to medium-term trend. The recent price action also indicates an attempt to break above the falling trendline formed from the August highs. Momentum indicators are supportive. RSI is at 61.06, indicating positive momentum without entering the overbought zone. However, MACD remains below its signal line, suggesting that momentum confirmation is still required for a sustained upside move. On the higher side, ₹1,665–₹1,680 may act as an immediate resistance zone. A decisive close above ₹1,680 could open the door towards ₹1,700 and ₹1,730 levels. On the downside, ₹1,600–₹1,590 is an important support zone, followed by ₹1,564. Overall, the technical structure has turned positive, but traders should watch for a sustained breakout above ₹1,680 for stronger confirmation. A failure to hold ₹1,600 could lead to consolidation or profit booking.