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Investors with a short-term perspective can buy the stock of Mahindra CIE Automotive at current levels. Following a medium-term downtrend, the stock found support at ₹135 in mid-August this year. Since then, the stock has been in a sideways consolidation phase. Significant support in the band between ₹135 and ₹140 has been cushioning the stock.
On Thursday, the stock surged 3.5 per cent accompanied by above average volume, breaching a key resistance at ₹148 as well as the 21-day moving average. There has been an increase in daily volume over the past two trading sessions. The daily relative strength index features in the neutral region and the weekly RSI is on the brink of entering the neutral region from the bearish zone. Besides, the daily price rate of change indicator hovers in the positive terrain implying buying interest.
Recently, the stock took support at around ₹140 and reversed higher. The short-term outlook appears to be bullish for the stock. It can continue to trend upwards and reach the price target of ₹157 and ₹160. Traders can buy the stock with a stop-loss at ₹147.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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