M&M - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.1
| Stock Code | M&M | Market Cap | 4,18,249 Cr. | Current Price | 3,364 ₹ | High / Low | 3,840 ₹ |
| Stock P/E | 29.9 | Book Value | 535 ₹ | Dividend Yield | 0.75 % | ROCE | 27.0 % |
| ROE | 20.8 % | Face Value | 5.00 ₹ | DMA 50 | 3,598 ₹ | DMA 200 | 3,392 ₹ |
| Chg in FII Hold | -0.55 % | Chg in DII Hold | 0.44 % | PAT Qtr | 4,521 Cr. | PAT Prev Qtr | 3,564 Cr. |
| RSI | 30.9 | MACD | -72.5 | Volume | 17,08,862 | Avg Vol 1Wk | 52,41,414 |
| Low price | 2,360 ₹ | High price | 3,840 ₹ | PEG Ratio | 0.87 | Debt to equity | 0.02 |
| 52w Index | 67.8 % | Qtr Profit Var | 17.7 % | EPS | 108 ₹ | Industry PE | 30.8 |
📊 Chart Patterns & Trend: M&M is trading at 3,364 ₹, below its 50 DMA (3,598 ₹) and slightly below its 200 DMA (3,392 ₹). This indicates a bearish consolidation with downward bias. The stock is closer to its 52-week high (3,840 ₹) than its low (2,360 ₹), but current weakness suggests caution.
📈 RSI: At 30.9, RSI is near oversold territory, signaling potential for a short-term rebound.
📉 MACD: Negative at -72.5, confirming bearish momentum and lack of bullish crossover signals.
📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions and possible mean reversion.
📊 Volume Trends: Current volume (17,08,862) is significantly lower than average weekly volume (52,41,414), showing weak participation and lack of conviction in recent moves.
🎯 Entry Zone: 3,300–3,350 ₹ (near support and oversold RSI).
🎯 Exit Zone: 3,580–3,620 ₹ (near 50 DMA resistance).
Positive
- Market cap of 4,18,249 Cr. reflects strong industry leadership.
- Stock P/E of 29.9 is aligned with industry PE of 30.8, showing fair valuation.
- ROCE (27.0%) and ROE (20.8%) highlight strong capital efficiency.
- Dividend yield of 0.75% provides modest income return.
- Debt-to-equity ratio at 0.02 shows near debt-free balance sheet.
- Quarterly PAT surged to 4,521 Cr. from 3,564 Cr., showing strong sequential growth.
- DII holdings increased by 0.44%, indicating domestic institutional confidence.
Limitation
- Stock trading below both 50 DMA and 200 DMA, showing weak momentum.
- FII holdings decreased (-0.55%), showing reduced foreign investor confidence.
- RSI and MACD both indicate bearish undertone.
- Volume participation is weak compared to average, reducing conviction in price action.
Company Negative News
- FII stake reduction highlights declining foreign investor confidence.
- Stock trading near oversold levels, reflecting weak sentiment.
Company Positive News
- Quarterly PAT growth of 17.7% indicates strong operational improvement.
- DII stake increase reflects domestic investor confidence.
- EPS at 108 ₹ supports long-term earnings visibility.
Industry
- Automobile sector trading at industry PE of 30.8, making M&M fairly valued at P/E of 29.9.
- Sector outlook remains positive with rising demand for SUVs, tractors, and EV adoption.
Conclusion
⚖️ M&M is in a bearish consolidation phase with oversold RSI and negative MACD. Entry near 3,300–3,350 ₹ offers margin of safety, while exits around 3,580–3,620 ₹ provide profit-taking opportunities. Long-term investors may find value due to strong fundamentals, high ROE/ROCE, and low debt, while short-term traders should wait for reversal signals before entering aggressively.
Selva, this is workflow-ready. Would you like me to also prepare a standardized HTML template with placeholders for peer benchmarking overlays and sector scans, so you can plug multiple stocks seamlessly into your automation system?