Mahindra Logistics soars nearly 5% on September 22! What does it mean for swing traders?

Mahindra Logistics soars nearly 5% on September 22! What does it mean for swing traders?

Indian Market
by 5paisa Research Team Last Updated: Dec 14, 2022 - 01:28 am 14.7k Views

Mahindra Logistics had registered a strong breakout from its triangle pattern last week and is technically bullish. 

Despite the globally induced bad cues on Thursday, along with weekly expiry volatility on Thursday, it has not stopped stock specific action across some midcap and Smallcap stocks. Strong buying is seen in Mahindra Logistics (MAHLOG), which has seen a strong rally recently. The shares of MAHLOG have jumped nearly 5% on Thursday and has soared nearly 10% from its recent swing low of Rs 506 level. Moreover, it had registered a breakout from its triangle pattern last week, which is a bullish signal. The breakout is supported by above average volume, which is greater than 10-day and 30-day average volume. Interestingly, the stock is also above all its key moving averages. Also, it has moved above 38.2% retracement level of its prior downtrend. Overall, the price pattern is strongly bullish.

Such price pattern is supported by technical parameters, which indicate strong strength in the stock. The 14-period daily RSI (67.03) is already in the bullish zone. The OBV is at its peak, which shows strong buying interest in the stock. The MACD histogram is rising shows potential upside. Meanwhile, all other momentum oscillators are in an uptrend. Moreover, the Relative Strength (RS) is above 0 and demonstrates relative outperformance against the broader market. Such bullish setup is perfect for the swing traders as they have a good opportunity to capture its bullish momentum.

In the past 3 months, the stock has jumped over 30% and has outperformed its peers. It provides favourable risk to reward ratio and one can expect good momentum in medium term.

Mahindra Logistics Ltd, a subsidiary of Mahindra group, operates as a third-party logistics service provider which offers inbound and outbound logistics, inter-plant movement, warehousing, linefeed, and People Transport Solutions. The DIIs have been readily increasing their stake from the past few quarters. It is one of strong growing company of the logistics sector.

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