M&M Share prices dropped by 4.5% on Monday 31-May-2021, the stock closed at 807.95 on NSE. In the intraday trading session stock slipped below 800 mark and touched intraday low 790, but managed to close above 800 mark. Stock corrected due to management commentary and future outlook. Management said it would take 2 years for sales to pick up and reach post COVID levels.
The company on May 28, 2021 reported good results for the quarter ended March 2021, on the back of improvement in demand for passenger vehicles and tractors.
Automotive business registered a 42.7 percent Yo-Y growth in revenue in Q4FY21. At the operating level, the segment reported a 73.1 percent growth in EBIT at Rs.390 crore with the margin improving 90 bps YoY to 5 percent during the quarter.
What’s Ahead? Technical Outlook Of M&M:
Stock has seen profit booking post Q4 results, stock breached 10,20 and 50 Exponential Moving average but closed above 50 EMA which acted at strong support for the stock. Intraday low of 790 will act as immediate support for the stock. Trend for the stock is up for the short term and long term. This correction seems to be an opportunity to accumulate the stock. Below 790 stock will enter into weak territory and hence for the swing traders we recommend to go long on the stock with stop loss placed below 790 on closing basis for the targets of 853- 878.
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