Mahindra Logistics shares off day's high, settle with 3% gains. Technical views

Shares of Mahindra Logistics Ltd on Tuesday jumped 10.90 per cent to hit an intraday high of Rs 430. The stock later erased more than half of its gains to close 3.07 per cent higher at Rs 399.65. Around 1.33 lakh shares changed hands today on BSE, which was way more than the two-week average volume of 12,000 shares. Turnover on the counter stood at Rs 5.53 crore, commanding a market capitalisation (m-cap) of Rs 2,878.92 crore.

At today's closing price of Rs 399.65, the stock has gained 14.22 per cent from its 52-week low price of Rs 349.90, a level seen on March 29, 2023. Yet, it has fallen 29.55 per cent from its one-year price of Rs 567.30, hit on September 23 last year. On a year-to-date (YTD) basis, the stock has declined 19.70 per cent.

On technical setup, the stock looked bullish but overbought on daily charts, one of the analysts said. Support on the counter could be seen around Rs 400.

Osho Krishan, Senior Analyst, Technical & Derivative Research at Angel One, said, "Mahindra Logistics has been in a downtrend for quite some time. But the stock has given a strong price volume breakout of the trading zone today, which augurs well for the stock. But as the higher time frame charts remain in a downtrend, one should wait for a retest of this breakout to act. As far as levels go, the stock is likely to find cushion in the Rs 395-400 zone, with sacrosanct support around the Rs 350 zone, and is likely to find resistance in the Rs 450 zone."

Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher, said, "The stock has witnessed a huge spurt with a big bullish candle on the daily charts. The bias has turned positive but overall, it needs to sustain above Rs 430 zone to anticipate for further upside move. The near-term support would be near Rs 395-398 zone where it may find consolidation."

AR Ramachandran from Tips2trades said, "Mahindra Logistics is bullish but also overbought on the daily charts with next resistance at Rs 445. A daily close below support of Rs 406 could lead to a fall till target of Rs 374 in the coming weeks."

The counter's 14-day relative strength index (RSI) came at 71.09. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-earnings (P/E) ratio of 43.29 against a price-to-book (P/B) value of 4.45. The scrip has a one-year beta of 0.48, indicating low volatility.

Meanwhile, Indian equity benchmarks settled at their fresh closing highs today. The 30-share BSE Sensex pack rose 205 points or 0.31 per cent to settle at 66,795, while the broader NSE Nifty index moved 38 points or 0.19 per cent to end at session at 19,749.