Todays Pick

M&M Financial Services (₹155.1): Buy

Yoganand D BL Research Bureau | Updated on August 27, 2021

Investor with a short-term view can buy the stock of Mahindra & Mahindra Financial Services at current levels. The stock has been in an intermediate-term downtrend since it had met with a key resistance at ₹220 in February this year. While trending down, the stock had breached a key support at ₹200 and continued to trend downwards. In June, the met another resistance at ₹173 and continued to trend downwards. Since then, the stock had been in a short-term downtrend until recently. However, the significant long-term support at ₹140 has cushioned the stock in late July and again this week. The stock has reverses higher from this support. On Thursday, the stock jumped 5.5 per cent with above average volume and has surpassed an immediate resistance at ₹150 and closed above the 21-day moving average as well. This rally has strengthened the bullish momentum. The daily relative strength index is charting higher in the neutral region and is likely to enter the bullish zone and the weekly RSI has entered the neutral region from the bearish zone. Overall, the short-term outlook is bullish for the stock. Targets are ₹162 and ₹165. Traders can buy the stock with a stop-loss at ₹151.

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

Published on August 27, 2021

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