Top buzzing stock: M&M Financial Services

The stock has shown extreme bullishness and is up over 6.5% on Wednesday.

Mahindra & Mahindra Financial Services Limited is a non-banking financial company (NBFC). The company serves the financing needs of the population residing in rural and semi-urban areas of India. With a market capitalization of about Rs 20170 crores, it is one of the most promising midcap company in its sector. The company has reported decent fundamental numbers in the past few years and has attracted long term investments. The company is also backed by institutions, which hold about a 35% stake in the company.

The stock of M&M Financial Services was trading lower for the past few days but found good support at Rs 150 level. However, the stock has shown extreme bullishness and is up over 6.5% on Wednesday. With this, the stock has crossed above its 20-DMA, 50-DMA as well as 200-DMA. Such strong price action is accompanied by huge volume recorded today, which is greater than 30-day and 50-day average volume which highlights larger participation in the stock.

To add further, the technical parameters hint towards bullishness. The 14-period daily RSI has jumped to 56 and has taken out its prior swing high. The lagging indicator MACD line is about to signal a bullish crossover against the signal line near the zero line. The Elder Impulse System has given a fresh buy signal. The other momentum oscillators and indicators are also pointing towards the bullishness of the stock.

Overall, the picture looks quite promising for the near future. The level of 170 can act as strong resistance as it failed to close above it multiple times. However, any strong closing above the level has to be taken very positively and the stock can witness a huge momentum. Considering ongoing bullishness, the stock is expected to test 170 levels. Short term traders/ Positional traders can consider this stock for long positions as technical charts show signs of bullishness. The overall sentiment of the market shall prove to be an important factor in the stock’s upcoming price movement.

Also read: Buzzing Stock: This small cap real estate company has given 23.04% returns in two days