The stock of Mahindra & Mahindra (₹1,072) was oscillating in the broad range of ₹720-950 between early 2021 and May 2022. In the first week of June this year, it broke out of this range, opening the door for further strengthening.

Supporting the bullish bias, the RSI and the MACD on the weekly chart are showing positive signs with more upside potential. The stock has also closed above the psychological level of ₹1,000. So, from the current level, the scrip is expected to appreciate to ₹1,250 in the next one year.

Note that there could be a pause at ₹1,150 while moving up.  So, the possibility of a pull back to retest ₹1,000 before breaking out of ₹1,150 cannot be ruled out.

Therefore, investors can consider buying the stock at the current level of ₹1,072 and accumulate more when price dips to ₹1,000. Place initial stop-loss at ₹920. When the stock rallies past ₹1,150 revise the stop-loss upwards to ₹1,075. Liquidate the stock when it touches ₹1,250.

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