Technical Pick- Mahindra and Mahindra
• Mahindra and Mahindra is finding support at 1320 and resistance above 1450. On Daily chart, Mahindra and Mahindra is having breakout above 1450.
• After profit booking the stock was consolidating for the past few months and now has given breakout above 1450 which the short term trend is expected to turn bullish.
• Daily 14 period RSI has turned up from near levels. As per the bullish high low theory of 40-70 levels, the daily RSI is expected to move up to 70- 75 levels from the current reading of 67. This could mean Continuation of upside momentum in the stock price ahead possibly a breakout also this time.
• MACD too has given the positive crossover (Buy signal) which indicates that upper side seems certain in it.
• Mahindra and Mahindra, after prolong corrective phase, has been trading in a broader range of 1141-1508 for last one year month.
• 14 Period Exponential average is also indicating the positive momentum in the stock as it has comfortably crossed the average with closing.
• Traders don’t go for aggressive or positional selling at all because trend looks positive and we expect rally to remain continue till 1700+++mark in coming weeks. For positional trade, stop loss seeing below 1320 on closing basis which in unlikely to breach in near terms.
Trading Recommendation:–
Buy M&M above 1450 and for the initial upside target of 1700++ mark with stop loss below 1320 on closing basis.
More will update soon!!!
