The share price of Mahindra & Mahindra Financial Services has taken a knock in the recent weeks. The carnage has pushed the stock to an area of support. As highlighted in the daily chart featured below, the fall has been arrested at the support level represented by the upsloping blue line.
We sense a low-risk buying opportunity in Mahindra & Mahindra Financial, with a stop loss at Rs.229 and target of Rs.285. A move beyond Rs.285 would be big positive signal but, let us discuss that once the event happens. The positive view is on the expectation that the stock has formed a swing low at the recent low of Rs.232.
A fall below our stop loss at Rs.229 would suggest that this view is invalid and would therefore warrant a closure of long positions.
(The view featured here is based on Technical Analysis of historical stock price action. Please read the Disclaimer)
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Hi,
Since this article has been written, the stock seems to be see-sawing between the 240 – 255 range. Is this still a good time to buy this stock or should I wait and watch?
Santhosh
Hello Santhosh,
The best buying opportunity is probably behind us. With the stop loss at Rs.229, the risk is too high if you buy at the prevailing market price of Rs.256. Wait for the price to get closer to the stop loss level before buying. The basic idea is to reduce risk.
Regards
B.Krishnakumar
This stock has not performed in the recent bull run but takes a dive in last week’s fall. Is it still a good investment stock?
Hi,
Since this article has been written, the stock seems to be see-sawing between the 240 – 255 range. Is this still a good time to buy this stock or should I wait and watch?
Santhosh
Hello Santhosh,
The best buying opportunity is probably behind us. With the stop loss at Rs.229, the risk is too high if you buy at the prevailing market price of Rs.256. Wait for the price to get closer to the stop loss level before buying. The basic idea is to reduce risk.
Regards
B.Krishnakumar
This stock has not performed in the recent bull run but takes a dive in last week’s fall. Is it still a good investment stock?