Mahindra Finance slips 3% after hitting 52-week high today

Shares of Mahindra & Mahindra Financial Services (Mahindra Finance) fell in Tuesday's trade after hitting their one-year high level. The stock rose 2.51 per cent in early deals to hit a day high -- also its 52-week high -- of Rs 247.05 against a previous close of Rs 241. Later, the scrip declined 3.40 per cent to hit a day low of Rs 232.80. Resistance on the counter could be seen at Rs 243.2, an analyst said.

Mahindra Finance, in an exchange filing, said that it has recorded a disbursement of around Rs 4,650 crore in December 2022, delivering a 67 per cent year-on-year (YoY) growth.

The collection efficiency stood at 98 per cent in December last year and the company continued to maintain a comfortable liquidity chest of about 4 months' requirement, M&M's finance arm added.

A total of 2.56 lakh shares changed hands today on BSE, which was more than double the two-week average quantity. The turnover on the counter came at Rs 6.04 crore. At this price, the company commanded a market capitalisation (m-cap) of Rs 28,868.16 crore.

There were 9,64,493 buy orders against sell orders of 3,67,850 shares.

Mahindra Finance surged 53.83 per cent last year, outperforming the 30-share BSE index's 3.52 per cent climb.

The counter was last seen trading higher than 5-day, 20-day, 50-day, 100-day and 200-day moving averages today.

The 14-day relative strength index (RSI) came at 54.76. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 13.75.

"Mahindra Finance has strong resistance at Rs 243.2 on the Daily charts. A close below the support of Rs 228 could lead to lower targets of Rs 206-195 in the coming days," said A R Ramachandran from Tips2trades.

Meanwhile, Indian equity benchmarks turned positive after a weak opening, led by gains in technology, state-owned banks and consumer durables.

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