M&M soars after the company launches Scorpio-N; stock jumps nearly 4%
The company launched a new vehicle Scorpio-N on June 28, which has led to a sharp jump in its shares.
The stock of M&M has rallied nearly 4% during the early hours of Tuesday’s trading session. In the past four trading sessions, the stock has jumped over 13% and has hit a fresh all-time high of Rs 1120.95 level. Strong buying has emerged after the company launched its new Scorpio-N in domestic as well as international markets. The company has announced the price starting from Rs 12 lakhs and going beyond Rs 19 lakh for high-end models. With such an announcement, the company shall prove to be a tougher competitor in the SUV segment as per the analysts. Analysts have maintained a “buy” rating and the shares have zoomed past the 1100-mark.
Last week, the stock registered a breakout from its falling trendline with heavier volumes and has been in a strong uptrend ever since. The volumes have been greater than the 10-day, 30-day and 50-day average volumes in the past four trading sessions, indicating strong buying interest among the market participants.
As per the technical parameters, the stock possesses strong strength in the stock. The 14-period daily RSI (72.50) is in the super bullish territory and indicating strong strength in the stock. The MACD has signalled a bullish crossover recently and suggests more potential upside. The On Balance Volume is at its peak, hinting towards strong volumetric strength. The Relative Strength (RS) is well above zero line and shows strong outperformance of the stock against the broader market. The Elder Impulse systems also maintain a buy signal. The stock is currently about 8% above its 20-DMA and 28% above its 200-DMA, which indicates that the stock is extremely bullish in short as well as long term.
On a YTD basis, the stock has surged over 33% and has outperformed most of its peers. The company is expected to provide robust sales data of June, which shall ultimately have a positive impact on the profitability of the company. The stock is expected to maintain its bullish stance for the medium term.
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