M&M hits new historic high; may hit Rs 1,500 levels soon, charts show

M&M stock has formed a "Golden Cross" pattern, exhibiting a healthy up move

Shares of Mahindra & Mahindra, the automotive manufacture, surged 7 per cent after 100,000 bookings were recorded, within 30 minutes of the booking commencement, of the new Mahindra Scorpio-N. 

The shares hit a new historic peak with strong volumes on Monday, and have gained 50 per cent, so far, in the current calendar year.

Here's how the technical chart of the stock looks like:

Mahindra & Mahindra Ltd (M&M)

Likely target: Rs 1,500

Upside potential: 20%

Post witnessing the deepest fall in February 2022, which violated the 200-day moving average (DMA) support, shares of Mahindra & Mahindra have succeeded in retrieving the lost sentiment. M&M stock has managed to form a "Golden Cross" pattern, exhibiting a healthy up move thereafter. 

The stock has surged over 80 per cent from March 2022 lows, and the present chart formation further indicates a bullish outlook. The "Higher high, Higher Low" pattern suggests a medium-term rally in the direction of Rs 1,500, which appears to be another 20 per cent upside.

The long-term bullish outlook is intact as long as the support of Rs 1,100 level is adhered on closing weekly basis. CLICK HERE FOR THE CHART