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The outlook for the stock of Mahindra & Mahindra is bullish. The stock surged 4.68 per cent on Wednesday, breaking above the key resistance level of ₹845.
The strong rise on Wednesday also marks the end of the downtrend that was in place since mid-November last year. It also confirms the beginning of a fresh leg of upmove and keeps the door open for a further rise from current levels. The broad region between ₹850 and ₹840 will now act as a good support zone for the stock. Dips to this support zone are more likely to attract fresh buyers coming into the market. The stock has strong potential to rise towards ₹950-₹970 and even ₹990 in the coming weeks. Traders with a short-term perspective can go long at current levels. Accumulate on dips at ₹855. Keep the stop-loss at ₹830. Trail the stop-loss up to ₹895 as soon as the stock moves up to ₹910. Move the stop-loss further up to ₹920 as soon as the stock touches ₹930. Exit the long positions at ₹945.
The price action in the region around ₹990 — a strong resistance, will need a close watch to see if the stock is reversing lower again or not.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)
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