Mahindra group: M&M, Mahindra Holidays may jump up to 25%, charts show

The Mahindra Group stocks, barring Tech Mahindra, have outperformed the benchmark indices considerably so far in 2022, and look fairly strong on the charts poised for more gains ahead.

Mahindra Group is an Indian multinational conglomerate having business presence in over 100 countries. Mahindra and Mahindra the group's flagship company is the market leader in utility vehicles and tractors in India. The Group has prominent presence in IT and realty space.

Shares of the flagship company Mahindra & Mahindra has rallied 30 per cent on a YTD (year–to-date) basis. Whereas, Mahindra Lifespace Developers, a subsidiary company of Mahindra Group hit a historic peak on Tuesday. The stock has surged as much as 85 per cent so far this year, and recorded a massive 8-fold jump post the Covid-19 induced market fall.

Among others, Mahindra Holidays & Resorts India and Mahindra & Mahindra Financial Services have gained over 20 per cent each in 2022 so far. However, the IT arm - Tech Mahindra has been a gross underperformer, declining a whopping 40 per cent till date.

So broadly speaking, most of the group shares have managed to defy the overall market trend and log handsome markets. Will this outperformance continue going ahead?

Here's an outlook on the Mahindra group stocks on the basis of the techncial charts:

Mahindra & Mahindra Ltd (M&M)

Likely target: Rs 1,375

Upside potential:  25%

Shares of Mahindra & Mahindra were in the spot light few sessions ago, when the stock recorded a new all-time high of Rs 1,121.45. The broader outlook continues to remain bullish for the stock, as the “Golden Cross” breakout of 200-day moving average (DMA) and 50-DMA firmly exhibits a positive sentiment. The immediate support for the stock is seen at Rs 960 and as long as the stock holds medium-term support of Rs 900, the upward rally may continue to foster higher levels of Rs 1,375 - Rs 1,400. CLICK HERE FOR THE CHART

Tech Mahindra Ltd (TECHM)

Outlook: Technical rebound likely

Shares of Tech Mahindra are closer to the 200-weekly moving average (WMA) set at Rs 904. This level also coincides with the support area seen in early 2021. In addition, the Relative Strength Index (RSI) trades in the oversold territory. Thus all these indicators signal to a possible pullback that needs to conquer Rs 1,150-level, its 100-WMA to embark a fresh bullish bias. CLICK HERE FOR THE CHART

Mahindra Holidays & Resorts India Ltd (MHRIL)

Likely target: Rs 300 and Rs 320 (breakout over Rs 260)

Upside potential:  15% to 23%

While the divergence on RSI is giving a hard time to determine a positive bias, the underneath momentum which prevails over 200-WMA continues to boost the price action, shows the weekly chart. The 200-DMA is placed at Rs 165. Moreover, the “Golden Cross” that seems to display breakout over Rs 260, could mean a medium-term upside to Rs 300 and Rs 320 levels.  The overall outlook looks promising despite current weakness in the benchmark indices.  CLICK HERE FOR THE CHART

Mahindra & Mahindra Financial Services Ltd (M&MFIN)

Outlook: Symmetrical triangle breakout

There appears to be a formation of a “Symmetrical triangle” on the daily chart. If this gets materialized into a breakout, above the upper trendline resistance of Rs 187, then the positive rally could see the stock price jump to Rs 200, its next imminent hurdle. The Moving Average Convergence Divergence (MACD) has climbed over the zero line, suggesting an upward bias. The support for the stock exists at Rs165. CLICK HERE FOR THE CHART

Mahindra Lifespace Developers Ltd (MAHLIFE)

Likely target: Rs 500 - Rs 550 

Upside potential:  15% to 25%

Post the breakout above Rs 340 in April 2022, the stock has rallied sharply to Rs 400-mark. Thereafter, the stock experienced selling pressure in the range of Rs 425 to Rs 400 levels. Now, the realty stock has conquered this hurdle range and seems ready to march forward. The up move could see prices in the range of Rs 500 – Rs 550 levels. The closing basis support for the stock stays at Rs 400. CLICK HERE FOR THE CHART