The analyst recommends short positions as both stocks fall below crucial trend supports.
Bearish momentum is building in Mahindra & Mahindra (M&M) and Interglobe Aviation (Indigo) as the stocks breach key technical levels.
SEBI-registered analyst Kush Ghodasara noted that momentum indicators are also weak, and he recommends a sell strategy on both stocks.
Let’s take a look at his recommendations:
Mahindra & Mahindra (M&M)
M&M has been moving within the upside-trending channel, but now it appears to be resisting at the midway point at ₹3,110. Additionally, momentum indicators are turning south while price breached Tuesday’s low after opening at a high price on Wednesday. Hence, Ghodasara sees strengthening bearish momentum in M&M.
He advised selling at the current market price and a target price of ₹3,065, ₹3,023, with a stop loss of ₹3,145.
M&M shares have gained 6% year-to-date (YTD).
Interglobe Aviation (Indigo)
Indigo stock had been on a rising trend, but now it seems to have a confirmed downward trend in a channel. Ghodasara noted that a crucial support level of ₹5,907 has been breached, and momentum indicators have turned weak, signaling slowing momentum.
He advised selling at the current market price with a target price of ₹5,746 and ₹5,621, and a stop-loss of ₹5,907.
Indigo shares have gained 27% YTD.
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