Mahindra & Mahindra Stock Shows Technical Strength Near Support, Experts Suggest Buy for 20% Upside

Mahindra & Mahindra Ltd (M&M), a prominent player in the automobile sector, recently saw its stock price dip after reaching highs in September 2025. However, the stock is now positioned near significant support levels, which analysts believe could lead to a rebound. Medium-term traders are being advised to consider buying M&M with a target price of Rs 4,200, achievable within the next 2 to 4 months. The stock, which is part of the BSE Sensex, hit a high of Rs 3,723 on September 9, 2025, but failed to maintain that momentum. It has successfully found support above its 50-day moving average multiple times between September and October 2025, indicating buying interest. Currently trading around its 50-day moving average on daily charts, M&M could be poised for another technical bounce. On the weekly chart, the stock is trading above its 3-month consolidation phase, with a neckline support around Rs 3,300. While trading below shorter-term moving averages (5, 10, 20, 30-DMA), it remains above longer-term averages (50, 100, 200-DMA). The daily Relative Strength Index (RSI) stands at 46.7, suggesting a neutral momentum. Ajit Mishra, SVP, Research at Religare Broking Ltd, noted that while the auto sector is mixed, M&M is a top performer, advancing steadily after breaking out from consolidation. He anticipates the positive momentum to continue, recommending accumulation between Rs 3,550-3,650 for a target of Rs 4,200, with a stop loss below Rs 3,250.

Impact: This news suggests a positive short-to-medium term outlook for Mahindra & Mahindra stock, potentially driving its price upwards based on technical factors and expert recommendations. Investors looking for opportunities in the auto sector might find this stock attractive. Rating: 7/10

Explanation of difficult terms: * **50-DMA (50-day Moving Average)**: This is a technical indicator that calculates the average closing price of a stock over the past 50 days. It helps identify the overall trend of the stock. * **Consolidation phase**: This is a period where a stock's price trades within a relatively narrow range, indicating market indecision before a potential price move. * **Neckline**: In technical chart patterns, the neckline is a support or resistance line that, when breached, signals a significant price movement is likely to follow. * **Relative Strength Index (RSI)**: A momentum indicator that measures the speed and change of price movements, helping to identify overbought or oversold conditions. * **Oversold**: A technical condition where a stock's price has fallen significantly, suggesting it might be due for a price increase. * **Overbought**: A technical condition where a stock's price has risen significantly, suggesting it might be due for a price decrease. * **Technical bounce back**: A recovery in a stock's price that is primarily driven by chart patterns and trading indicators, rather than changes in the company's underlying business fundamentals.