Tech Mahindra reversed downward after registering a 52-week high at Rs 887.7 on August 27. British Telecom, a global telecom giant, sold 14.1 per cent stake in Tech Mahindra for about Rs 1,395 crore on Thursday and announced that it would consider further stake sale in future. With this, the BT group has trimmed its holdings in the company from 23.16 per cent to 9.1 per cent.

The stock fell by 5 per cent on Thursday with a downward gap. But, medium-term uptrend of the stock that has been in place since May low of Rs 591 will continue as long as it trades above Rs 735.

For the week, the stock fell 8.6 per cent with extraordinary volumes, forming a bearish engulfing candlestick pattern in weekly chart implying downward reversal.

A decisive fall below the afore-mentioned support will drag the stock down to Rs 700 and then to Rs 650 in the medium-term. Move beyond Rs 835 can take the stock higher to Rs 875 or to Rs 900. Significant long-term resistance above Rs 900 is at Rs 950.

Orchid Chemicals & Pharmaceuticals (Rs 109.6)

Following the company's announcement that it will sell various assets including active pharmaceutical ingredients business and associated research infrastructure facility to the US-based Hospira Inc for $200 million (nearly Rs 1,112 crore), the stock gained 5.5 per cent on Thursday. But this rally could not sustain and the stock tumbled 8 per cent accompanied by good volume last week.

Long as well as medium-term trends are down for the stock. It is hovering just above the key psychological support at Rs 100. Strong downward breakthrough of this support will pull the stock down to Rs 90 and to Rs 78 in the medium-term.

Only a decisive move above Rs 150 will alter the medium-term downtrend and take the stock higher to Rs 170 or Rs 180. Next important resistance is at Rs 200. Hurdles for the week ahead are at Rs 120 and Rs 127.

(This view is based on technical analysis. There is a risk of loss in trading.)

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