Todays Pick

Mahindra & Mahindra (₹834.7): Sell

Akhil Nallamuthu | | Updated on: Dec 02, 2021
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The stock of Mahindra and Mahindra, since October, made two attempts to move past the resistance at ₹970. Unable to do so, it lost momentum and bears started to creep in. As a result, the stock has been falling after marking a fresh 52-week high of ₹979 a couple of weeks back.

On Tuesday, the scrip broke below the key support of ₹850, thereby confirming a double-top price pattern. Thus, further depreciation is highly likely. Supporting the bearish outlook, the price is now below the 50-day moving average and indicators like RSI and MACD are pointing downwards.

The stock is likely to drop below the support at ₹800 and touch ₹765 in the near term. Subsequent support is at ₹735. But there are chances for the price to move up to ₹860 before falling towards the above-mentioned supports.

Thus, traders can sell at current level and short again if it rallies to ₹860. Place stop-loss at ₹880. When the price drops below ₹800, revise the stop-loss to ₹840. Fully exit the short positions at ₹765.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

Published on December 02, 2021

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