Mahindra & Mahindra Share Price Bearish on Technical Charts; Selling Could be Seen Below Rs 2,750
Mahindra & Mahindra stock has turned bearish on technical charts. The stock declined by 2.48 percent on Tuesday and could face further selling pressure. M&M closed at Rs 2,816 after touching intraday high at Rs 2,907.
Mahindra & Mahindra (M&M), a leading name in India’s automobile and farm equipment sectors, is trading within a range of Rs. 2,808.90 to Rs. 2,907.00. With a market capitalization of Rs. 3.38 lakh crore, a Price-to-Earnings (P/E) ratio of 26.57, and a dividend yield of 0.75%, M&M demonstrates a robust financial foundation. The stock has moved significantly from its 52-week low of Rs. 1,575.00 but remains below its 52-week high of Rs. 3,237.05. TopNews delves into M&M’s performance metrics, technical indicators, and competitive position, offering actionable insights for investors.
Stock Performance: Key Metrics
| Metric | Value |
|---|---|
| Current Price Range | Rs. 2,808.90 - Rs. 2,907.00 |
| Market Cap | Rs. 3.38 lakh crore |
| Price-to-Earnings (P/E) Ratio | 26.57 |
| Dividend Yield | 0.75% |
| 52-Week High | Rs. 3,237.05 |
| 52-Week Low | Rs. 1,575.00 |
Mahindra & Mahindra’s strong market presence in the SUV and tractor segments underpins its consistent performance, with a solid financial footing that attracts investor interest.
Technical Analysis: Candlestick Patterns
The daily candlestick chart for M&M reveals a Spinning Top Pattern, characterized by small body candles with long wicks on both sides. This pattern typically reflects market indecision, indicating that neither buyers nor sellers have dominated the session.
Given this pattern near a key support zone, traders should watch for a breakout or breakdown in subsequent sessions for clarity on the trend direction.
Fibonacci Retracement Levels
Using the 52-week high (Rs. 3,237.05) and low (Rs. 1,575.00), the Fibonacci levels are as follows:
| Level | Price |
|---|---|
| 0% (52-week low) | Rs. 1,575.00 |
| 23.6% | Rs. 2,036.77 |
| 38.2% | Rs. 2,384.33 |
| 50% | Rs. 2,406.02 |
| 61.8% | Rs. 2,631.71 |
| 100% (52-week high) | Rs. 3,237.05 |
Key Insight:
The stock is trading above the 61.8% Fibonacci retracement level (Rs. 2,631.71), a bullish signal. A move past Rs. 2,907.00 could push the price toward the 100% retracement level at Rs. 3,237.05, its 52-week high.
Support and Resistance Levels
Support: Rs. 2,808.90
Resistance: Rs. 2,907.00
Trading Strategy:
A breakout above Rs. 2,907.00 may confirm a bullish trend, with Rs. 3,100 as the next target.
If the stock falls below Rs. 2,808.90, it could test lower Fibonacci levels near Rs. 2,631.71.
Analyst Recommendations
Motilal Oswal, in its January 2025 report, rates M&M as a “Buy” with a target price of Rs. 3,350, citing strong tractor sales and consistent growth in the SUV segment.
HDFC Securities recommends a “Hold” with a target of Rs. 3,200, highlighting potential risks from rising input costs and competitive pressures.
Actionable Insights and Investment Strategy
Short-Term Traders:
Watch for a breakout above Rs. 2,907.00 to confirm bullish momentum.
Use Rs. 2,808.90 as a stop-loss to manage downside risk.
Long-Term Investors:
M&M’s robust presence in both the urban and rural markets, combined with its electric vehicle push, makes it a compelling long-term play.
Accumulate positions during corrections with a target price of Rs. 3,350 over the next 12 months.
Risk Factors:
Rising raw material costs could impact margins.
Increased competition in the SUV segment may pressure market share.
