M&M has been seen bouncing every time when Stochastic turns into deep oversold territory. We should likely to see this thing happening around 611-612 level with stop loss of 585 (daily closing) for Target 665-680 on higher side. Tendency of mean reversion has been strong in terms of probability considering history of the pattern. We might hear fundamental reason of launching of new vehicle (XUV 300) once market reaches 650-660. Also M&M has seen spike from 2-3 months correction of 20-24% in last 6 years.
Trade closed: target reached:
M&M Bounced from 615. Call didn't initiated but the view was right. CMP .678