Tech Mahindra, MTNL hit consecutive 52-week highs—Here is Why

The shares of IT consulting and software giant Tech Mahindra on Tuesday hit a consecutive 52-week high after closing at Rs 1,791.95 per share on the BSE on Monday. Tech Mahindra shares traded at Rs 1822.90 per share, a fresh high, for the second straight day in a row on Tuesday.  

At 1.05 pm, shares of IT consulting and software firm was trading with Rs 35.30 gain to Rs 1820.20 apiece on the BSE. This IT share has clocked a return of 91% in one year, 131% in two years, and 281% in five years as of December 28, as per Stock Edge, an app to analyse NSE, BSE data.  

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Meanwhile, shares of MTNL, a wholly-owned subsidiary of Bharat Sanchar Nigam Limited, also rallied to a 52-week high value of Rs 38.95 after spurting nearly 10 per cent. Shares of MTNL were locked in the upper circuit and were trading at Rs 38.95, up Rs 3.50 or 9.87%, at 1.15 pm on Tuesday. The stock of this telecom service provider has clocked 182 per cent return in one year, while the shares of MTNL clocked 310 per cent return in 2 years as on December 28, showed the same data.  

Earlier, Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities Ltd said Tech Mahindra Ltd has formed a higher bottom formation post a short-term correction.  

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"The structure of the chart suggests that there is a strong possibility of a fresh breakout continuation formation that is likely to carry-on, in the near future. Unless it is trading below 1670, positional traders must retain an optimistic stance and look for a target 1800," he had said.    

Earlier, The Indian Benchmarks made a gap up opening on Tuesday morning as the Nift50 and the Sensex opened 0.50% higher amid positive global cues.  

"Markets will take support with a report that India’s exports in the first weeks of December rose 36.20% coupled with rise in outbound shipments around 27.7%. Market participants may show cautiousness as the Centre extended the existing Covid- related restrictions in the country till January month. There may be some buzz in the telecom stocks as the Department of Telecommunications (DoT) said commercial 5g services will be rolled out in 13 cities in India," said Gaurav Garg, Head of Research, Capitalvia Global Research Ltd.

He said the research suggests that the levels of 17100 may act as important levels in the market. "If the market sustained the levels of 17100,We can expect the market to trade in the range of 17100-17400. Technical indicators also support positivity in the market," he added.