Trending stock under Rs 200: M&M Financial Service Ltd

The stock of M&MFIN is bullish and has soared about 4% on Wednesday’s trading session.

Mahindra & Mahindra Financial Services Limited is an NBFC, prominently financing the population residing in rural and semi-urban areas of India.

The stock of M&MFIN has soared about 4% on Wednesday’s trading session. It has bounced back from its 20-DMA and recorded above-average volumes during the prices. The volume was found to be greater than the 10-day, 30-day and 50-day average volume. Despite the gap-down opening, the stock has received strong buying interest at lower levels and has formed a bullish candle on the technical chart. Moreover, rising volumes were recorded for the fourth consecutive day, justifying strong buying interest among the market participants.

Along with its strong price structure, several technical parameters are pointing towards the bullishness of the stock. The 14-period daily RSI (69.17) indicates a strong strength in the stock, while the +DMI is above the -DMI and ADX point upwards. This is a sign of bullishness and depicts a strong uptrend. On Balance Volume has crossed above its prior swing highs and demonstrates strong strength in the stock from volume’s point of view. The Mansfield Relative Strength indicator indicates a relative outperformance of the stock as against Nifty 500. Other momentum oscillators and technical parameters are in-line with the stock’s bullishness as it trades above all the key moving averages. It is 15% above its 200-DMA and over 6% above its 20-DMA. Moreover, moving averages point upward and indicate bullishness.

In one month, the stock has gained about 12% and about 22% in three months. It is in a strong uptrend as indicated by the above points. Considering the ongoing momentum, the stock is expected to test the level of Rs 200, followed by Rs 210 in the short to medium term. It presents a good opportunity for swing trading. Short term traders/ positional traders can expect decent profit in the near term as predicted by the technical analysis.