M&M - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 3.6

📉 Chart Patterns & Trend: M&M is trading at ₹3,601, slightly below its 50 DMA (₹3,619) but above its 200 DMA (₹3,318). This indicates a consolidation phase after a strong rally, with sideways movement near resistance levels.

📊 Moving Averages: Price above the 200 DMA confirms long-term bullishness, but hovering around the 50 DMA shows short-term indecision. Key support lies near ₹3,318 and resistance near ₹3,796.

📉 RSI: At 42.0, RSI is neutral-to-weak, suggesting limited momentum and potential consolidation.

📉 MACD: Negative MACD (-9.94) signals weakening momentum, hinting at possible short-term correction.

📉 Bollinger Bands: Price is near the mid-band, indicating consolidation. A breakout above ₹3,650 could trigger bullish momentum, while a dip below ₹3,550 may signal weakness.

📊 Volume Trends: Current volume (31.9L) is significantly higher than the weekly average (19.0L), showing increased activity. However, higher volume near resistance suggests caution.

🎯 Entry Zone: ₹3,500–₹3,550 (near support)

🚪 Exit Zone: ₹3,750–₹3,800 (near resistance/high)

Positive

• Strong ROCE (27.0%) and ROE (20.8%) reflect efficient capital utilization.
• Low debt-to-equity ratio (0.02) ensures financial stability.
• Quarterly PAT growth (+17.7%) shows improving profitability.
• EPS of ₹108 highlights strong earnings power.

Limitation

• Stock trading below 50 DMA indicates short-term weakness.
• FII holding decreased (-0.49%), showing reduced foreign investor confidence.
• Dividend yield at 0.71% is modest for income-focused investors.

Company Negative News

• Short-term momentum weakening as MACD turns negative.
• Foreign institutional investors reducing stake adds pressure on valuations.

Company Positive News

• DII holding increased (+0.38%), reflecting stronger domestic institutional support.
• Quarterly profits rose from ₹3,564 Cr. to ₹4,521 Cr., showing strong growth.
• Strong fundamentals with low leverage and high efficiency ratios.

Industry

• Industry PE at 33.9 is slightly higher than M&M’s PE (31.9), suggesting fair valuation.
• Automobile sector demand supported by SUV sales, rural demand, and infrastructure growth.

Conclusion

📌 M&M is in a consolidation phase, trading near its 50 DMA with neutral RSI and negative MACD. Entry near ₹3,500–₹3,550 offers favorable risk-reward, while resistance at ₹3,750–₹3,800 provides exit targets. Strong fundamentals and profitability support long-term bullish potential, but short-term momentum remains weak.