Mumbai, June 17, 2025 Tech Mahindra (NSE: TECHM) has continued its impressive upward momentum, rising for the 10th consecutive trading session, signaling renewed investor interest and sectoral optimism. The stock has surged over 12% in just two weeks, leaving both retail and institutional investors wondering: Is it time to buy, hold, or cash in on profits?
What’s Fueling the Rally?
Several factors are contributing to Tech Mahindra’s recent bullish run:
1. Improving IT Sector Outlook
Recent global data suggests a rebound in IT spending for FY25–26, especially in digital transformation, cloud migration, and AI-powered automation. Tech Mahindra, with its deep enterprise and telecom portfolio, is seen as a key beneficiary.
2. Positive Earnings Guidance
In its latest quarterly report, TechM beat consensus earnings estimates and issued optimistic guidance for the upcoming quarters. Cost optimization efforts and a revival in deal wins, particularly from North America and Europe, are driving positive sentiment.
3. AI and 5G Integration Play
The company’s investments in artificial intelligence, 5G services, and enterprise tech consulting are starting to reflect in its pipeline strength and margin projections, according to analysts.
Technical Indicators – What the Charts Say
- RSI (Relative Strength Index): Hovering above 70, suggesting an overbought zone
- MACD (Moving Average Convergence Divergence): Shows bullish crossover
- Volume Trends: Higher-than-average volumes indicating strong institutional participation
While technicals indicate strength, the overbought signal suggests the possibility of a short-term pullback or consolidation.
What Are Analysts Saying?
- Motilal Oswal: “TechM is seeing turnaround signs, but valuations are catching up. Accumulate on dips.”
- ICICI Direct: “Strong rally backed by fundamentals, but profit-booking advisable near ₹1,525–₹1,550 levels.”
- Kotak Securities: “Hold. Wait for fresh triggers. Long-term story remains intact.”
Buy, Hold or Sell – What Should Investors Do?
BUY – If:
- You have a long-term view (12–24 months)
- You believe in India’s tech-led growth story
- You missed the recent rally and are looking for SIP-style entries
HOLD – If:
- You’ve already benefited from the recent run-uphttps://mediawala.live/
- You’re unsure of short-term volatilityhttps://newsium.in/
- You believe the company still has upside post-consolidation
SELL or Book Partial Profits – If:
- You bought at lower levels and are sitting on 10–15%+ gains
- You want to rebalance your portfolio
- RSI levels and sentiment suggest a near-term cooldown
Conclusion: Don’t Chase, But Don’t Ignore
Tech Mahindra’s 10-day rally is a clear sign of renewed market confidence. However, chasing a rally in overbought territory comes with risks. For long-term believers in TechM’s transformation story, partial accumulation on dips or staggered entries is advised. For those sitting on gains, a partial profit-booking strategy can help lock in returns while staying exposed to further upside.
Key Takeaways:
| Metric | Value/Insight |
|---|---|
| Days in a Row Gained | 10 consecutive sessions |
| Short-Term RSI | Overbought (>70) |
| Fundamental Trend | Positive earnings + deal pipeline |
| Recommendation | Hold/Book Partial Profits |
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