Mahindra & Mahindra Limited (M&M) Stock - Complete Technical Analysis - Sep 24, 2024

Mahindra & Mahindra Stock Analysis M&M Near 52-Week High Will It Breakout

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investing in stocks involves risks, and it's essential to conduct thorough research or consult with a financial advisor before making investment decisions.

Mahindra & Mahindra (M&M) stock is currently trading at 3,074, slightly below its 52-week high of 3,056.9, indicating strong bullish momentum. The stock has demonstrated a massive 112.02% rally from its 52-week low of 1,450, showcasing significant strength over the past year. The Relative Strength Index (RSI) is at elevated levels, suggesting that the stock is in overbought territory, and traders should watch for a potential pullback. Additionally, the Stochastic RSI and Williams Percent Range both indicate overbought conditions, signaling a potential correction in the short term.

The MACD remains positive, indicating upward momentum, and the Awesome Oscillator supports this bullish trend. However, the Average Directional Index (ADX) suggests a weakening trend strength, as it is below the critical threshold. This could signal that the bullish momentum may slow down in the near future. On the moving averages front, the stock is trading well above its key Exponential Moving Averages (EMAs), with the 10-day EMA providing strong immediate support around 2,884.

Given these conditions, M&M could face resistance at the 3,100-3,150 range, where profit booking may occur, but a breakout above this level could lead to further upside. Support is strong around 2,850-2,900, with the moving averages and previous consolidation levels acting as cushions. Traders should remain cautious with tight stop losses, especially considering the overbought signals from multiple indicators like RSI and Stochastic RSI. Watch for a consolidation or minor retracement before the next upward move.