Mahindra & Mahindra Ltd. was listed back on NSE on 3 January 1996, stock performance of the comapany was not that attractive until the 2009, from the 2009 lows the stock today trades about 8 times that low established on the year 2009. We are looking for technical and we feel the stock is technically strong and also there is no reason for the stock to correct also we are now looking for buying opportunities as long as the stock trades above the 645 level, looking at the daily charts we see that a symmetrical triangle is forming and we are sure that it will follow a breakout in the end of the pattern. So one needs to wait for the breakout before entering into the trade, the trade setup can be as follows: this breakout must be witnessed by the year end and one should take positions only on the direction of the breakout trade. Targets must be twice than the risked (stop loss) amount i.e in the 2:1 risk reward ratio. We are sure that this is high probability setup and there are more chances that our target levels will be met.
Fundamental Analysis of M&M:
Company has very strong balance sheet, also its 4 wheeler segment is doing very well in luxury cars. Recently we saw its XUV-500 vehicle gaining strong booking, we believe this new launch will gear up the revenues for M&M so the stock has nice chances that its will continue its uptrend.