Wednesday, February 27, 2013

Mahindra and Mahindra Ltd

Mahindra and Mahindra

M&M is rallied almost 58% in this recent rally from May 2012 lows. Stock almost made DOUBLE TOP at around 975 levels on 19th December 2012 and 10th Januray 2013. From then stock corrected and showing  bearish by trading below 50 DEMA for almost a month and Half in a range bound.

Short Term:

M&M is looking weak for the shorter term. Crossing above 912 stock may show some strength to go up.Considering todays correction and MACD cross over, stock may trade with negative bias. Short the stock with a target of 840( 200 DEMA) and second target of 800 ( Down ward channel trend line).

Longer Term:

M&M is moving in a big channel for almost more than 2 years. Stock used to rally from bottom of the channel to higher end of the channel and then corrects slowly towards the bottom of the channel. This time also stock rallied 58% almost and made a double bottom while trying to break out of the channel which was not success at this time. Now stock correcting a bit. Stock may correct to the levels of 800 where stock seems to be a good buy for longer period of time.This time if stock give a break out of the channel above 990 levels stock may see 1600 levels. Stock is into a channel for longer term more than 2 years, not expecting a break down.Buy in every dip to 800 and 756 with strict SL at 670. If unfortunately break down happens below 670 levels then stock may see 350 - 370 levels which may not happen.

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