Mahindra & Mahindra is one of the fastest growing 4 wheeler manufacture in India. The company has been shown very strong growth in its 4 wheeler and 2 wheeler segment both. If we speak about the out performance, then M&M stock has recently made 52 week high at 877 levels on NSE, After touching that 52 week high we have seen a steep correction in stock prices, taking it to 813 levels, but this fall lacked sufficient volumes and so we are confident that buying will resume in M&M as it still remains a buying opportunity. If we look at the open interest data, we see that even after the stock has fallen 2.7% in last session there was no large alteration in the open interest. This is an extra confirmation for us to take long positions on M&M stock, We advice traders to buy M&M 840 call option November series around 11 level for target as 19 and 24 level. Stop loss for this positions must be placed around 4. Traders can also take long positions in M&M futures for targets as 844 and then 869 levels. Looking at the technical indicators, RSI tells us that M&M stock is still bullish and it must strengthen further, Also this stock has strong support at 810 level so we can see immediate bounce in this stock in one or two days. our strategy will be “buy on dips” for the investors. Recently the stock has broke out of symmetrical triangle pattern. M&M futures was seen trading with a premium of 6 points, indicates that upside for this stock is highly possible. The recent fall in M&M stock price was due to a report, that said the sales of 4 wheeler declined to its decades low, If we are not wrong then this was mainly due to the production failure at Maruti Suzuki manufacturing plant. Fundamentals for this company is still strong and it don’t change our bullish outlook.
Stock Options Trading Tips: Accumulate Mahindra & Mahindra (M&M) 840 Call option near 11 for targets as 19 and then 24 level. We would also remind traders to place their protective stop loss orders just below 4. Risk reward ratio is near 1:1 so traders must be strict with the stop loss in this trading idea.