The automaker has been on patrons’ radar to date in 2022 pushing the inventory to a contemporary 52-week excessive of Rs 1043 on 31 Might 2022 on the BSE. The inventory bounced again after hitting a low of Rs 671 in March 2022.
The inventory has been transferring in a better excessive and better low vary which is bullish in nature. The inventory just lately took help close to Rs 850 ranges earlier in Might 2022 after which bounced again which can now turn into a cease loss for all lengthy positions.
Earlier in Might M&M reported a 427 per cent leap in its standalone revenue after tax (PAT) at Rs 1,292 crore, for the quarter ended March 2022. The auto main had clocked an of Rs 245 crore in the identical quarter final 12 months.
The inventory has rallied over 23 per cent to date within the 12 months 2022 and has greater than trebled since its Covid 2020 lows.
The technical construction suggests a continuation of momentum and is an effective purchase on dips inventory in the direction of Rs 935-919 ranges. A detailed beneath Rs 919 can take the inventory in the direction of Rs 907-894-885 ranges, recommend consultants.
On the worth motion entrance, the inventory is buying and selling above short- and long-term transferring averages. It’s buying and selling above 5,10,20,50,100 and 200-DMA which is a optimistic signal for the bulls.
“The inventory worth Began its up transfer from 246 (March 20). The inventory made a excessive of Rs 666 (Sept 20) and after consolidation once more moved as much as Rs 952 (Feb 21),” Bharat Gala, President – Technical Analysis,
“Revenue-booking adopted however the inventory bounced from the averages and made a brand new excessive of Rs 979 (Nov 21). Thereafter the inventory trended downwards and made a low of Rs 671 (March 22). Lately, steady optimistic worth candles have fashioned and inventory made a excessive of Rs 961,” he stated.
The continual optimistic worth candle supported by volumes suggests a brand new shopping for curiosity within the inventory. The Aroon Up/down, ADX, MACD & PVT indicators recommend a potential agency uptrend.
“The potential targets are 1100-1300-1500. If the inventory worth corrects downwards the purchase ranges are (Rs 935-919) – Rs 907 – (Rs 894-885). A Cease Loss to be noticed within the commerce is Rs 850,” recommends Gala.
(Disclaimer: Suggestions, recommendations, views, and opinions given by the consultants are their very own. These don’t characterize the views of Financial Instances)