Shares of Mahindra and Mahindra Ltd fell over 3 per cent to Rs 718.30, the lowest since December 12.
At about 2.20 pm, the stock was quoting at Rs 718.70, down Rs 23 or 3.10 per cent.
The stock broke below a support at Rs 743.3, the 23.6 per cent Fibonacci projection level of the downtrend from the September 21 high to the December 11 low (Wave iii).
This suggests the stock may test the next support at Rs 702, the 38.2 per cent projection level. The stock’s wave pattern suggests it is still in the initial wave A of a three-wave downturn. MACD cuts below the signal line, a bearish signal. The stock was down 6.22 per cent in the last one month as of Wednesday’s close compared with the broader NSE index’s 0.77 per cent fall in the same period.