M&M - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

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Technical Rating: 4.3

Technical Analysis Summary

• Trend: Trending upward with strong long-term momentum
• Moving Averages: Price (₹3,487) is above DMA 50 (₹3,476) and DMA 200 (₹3,179), confirming bullish bias
• RSI (45.1): Neutral zone, room for upside before overbought
• MACD (16.9): Bullish crossover, supporting continuation of uptrend
• Bollinger Bands: Price near mid-band, indicating consolidation with potential breakout
• Volume: Slightly below average, suggesting cautious accumulation

Entry & Exit Zones

• Support: ₹3,450 – ₹3,475 (DMA 50 and recent base)
• Resistance: ₹3,700 – ₹3,724 (52-week high zone)
• Optimal Entry: ₹3,460 – ₹3,480 on pullback with MACD confirmation
• Exit Zone: ₹3,700 – ₹3,724 if price stalls near resistance

Positive

• Strong quarterly PAT growth of 36.4%
• Low debt-to-equity ratio (0.03) and high ROCE (27%)
• PEG ratio of 0.95 suggests fair valuation for growth
• EPS of ₹102 and 82.6% gain over 52 weeks

Limitation

• RSI still below 50, indicating lack of strong momentum
• Volume slightly below average, suggesting limited conviction
• FII holding declined by 0.49%
• Stock P/E (32.6) close to industry average (35.0), limiting valuation edge

Company Negative News

• Concerns over global supply chain disruptions affecting auto sector

Company Positive News

• Strong demand in SUV and tractor segments driving revenue growth
• Positive sentiment from domestic institutional investors (DII holding up by 0.38%)

Industry

• M&M operates in the automotive and farm equipment sector
• Peers include Tata Motors, Maruti Suzuki, and Ashok Leyland

Conclusion

M&M is currently trending upward with bullish technical indicators and strong fundamentals. While short-term momentum is moderate, long-term outlook remains positive. Traders may consider accumulating near ₹3,460 with targets around ₹3,724 and beyond.