Tech Mahindra vs Dixon Technologies: Which IT Stock To Buy Today - 15th October

The domestic benchmark indices began the day higher, following global trends on Monday. Nifty had a strong start to the day and continued to see buying demand, completing at 25,128. Bank Nifty had a strong start to the day and continued to rise, wrapping up at 51,817. There has been a decrease in market volatility as seen by the volatility index, INDIA VIX, which cooled off by 1.70% and settled at 13.00. In the near future, stock-specific movements will be the main emphasis throughout the Q2 results season, and today, Reliance Industries will be the main focus following the announcement of mixed Q2 results.

Nifty Outlook

"Technically, on the daily chart, the index formed a green candle, signalling strength. On the upside, the 21-DEMA is placed near 25,270, which will act as a short-term hurdle for the index, followed by 25,400. On the downside, the index will find immediate support near 24,900. Thus, as long as the index holds above 24,900, a "buy on dips" strategy should be pursued," said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd. (A Pantomath Group Company).

Bank Nifty Outlook

"Technically, the index also formed a green candle, indicating strength. Additionally, the index sustained above the high of the hammer candle around 51,785, triggering fresh bullishness. Bank Nifty could test levels of 52,500-52,800 in the short term. On the downside, 51,000 will provide strong support for Bank Nifty, where the 100-DEMA is placed. Thus, as long as the index holds above 51,000, a "buy on dips" strategy should be pursued," commented Hrishikesh Yedve.

Stocks To Buy Today

On Tuesday, October 15, executive director of Choice Broking Sumeet Bagadia recommended purchasing two stocks, as the Nifty's outlook remained neutral due to its position between the 24,900 support and the 25,250 resistance.

Tech Mahindra

Buy TECHM in cash @ 1692.5, stop-loss 1630, target 1777

TECHM is currently trading at Rs 1692.5. After a period of small falls and sideways consolidation, the stock has lately broken the neckline levels of Rs 1658 and is rising quickly on the upside with substantial volume. There are expectations of further upward movement, potentially reaching Rs 1777 levels. On the downside, substantial support is evident near Rs 1630.

Furthermore, TECHM is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This suggests a strong bullish momentum, indicating the potential for continued upward price action. The Relative Strength Index (RSI) stands at 61.91, signalling an upward trajectory and confirming an increase in buying momentum. .

In summary, considering the technical analysis and prevailing market conditions, TECHM appears to present a promising buying opportunity for those targeting a Rs 1777 price objective, contingent upon the implementation of prudent risk management measures.

To manage risk effectively, it is advisable to set a stop-loss (SL) at Rs 1630 to protect the investment in case of an unexpected market reversal.

Dixon Technologies

Buy DIXON in cash @ 15265.05, stop-loss @ 14666, target @ 16250

DIXON daily chart analysis offers a favourable view for the following week, indicating a steady higher advance. Notably, the stock has produced a notable higher high and higher low pattern, and the company's recent upward swing has effectively violated the neckline, establishing a new week high. This breakthrough indicates the possibility of a significant follow-through upward increase in the stock price.

This trend signals strong momentum in the stock. There is potential for DIXON to attain a target price of Rs 16250 in the near term.

Adding to the positive momentum, there has been an increase in trading volume, indicating growing market interest. The stock formed a strong momentum candle on daily chart signalling a potential continuation of the uptrend. Furthermore, DIXON is currently trading above its crucial 20-day, 50-day, and 100-day Exponential Moving Average (EMA) levels, reinforcing the bullish trend.

For traders, keeping an eye on the strong support near 14666 levels is advisable, as a breach of this level could signal a shift in sentiment.

Based on the above analysis we recommend buying DIXON and the CMP of 15265.05 with a stop loss of 14666 for the target of 16250.