Is Mahindra CIE Automotive ready for an uptrend? Let’s find out

MAHINDCIE witnessed fresh buying interest as it jumped nearly 3% after a decent correction period.

While the broader markets have exhibited weakness during Friday’s trading session, quality midcap and smallcap stocks continue to remain the highlight of the show as investors put confidence in attractively valued stocks. Shares of Mahindra CIE Automotive (NSE Code: MAHINDCIE) have soared over 2% amid strong buying interest at lower levels. It has been the hot topic lately, having generated nearly 30% this year and has outperformed most of its peers. From its all-time high of Rs 328 level on the NSE, the stock had corrected nearly 15% in the past one month. However, the stock has registered a good price volume breakout after forming a base at lower levels, which makes it quite attractive.

Technically, the stock has taken support of its 50-DMA and has bounced with good volumes. It has also crossed above its 20-DMA. The volume is found to be greater than the 10-day average volume. The 14-period daily RSI (53.10) is rising and shows good strength in the stock. The MACD is about to give a bullish crossover. The OBV remains elevated and shows active trading in the stock. The Elder Impulse system has indicated a fresh buy. The Relative Strength (RS) shows improving strength against the broader market. In a nutshell, the stock is at an attractive buying level and is expected to soar higher given the positive price pattern.

In its recent quarterly results, revenue jumped 37% YoY to Rs 1208 crore in September 2022, while EBITDA grew 35% to Rs 172 crore. The company expects robust demand in upcoming quarters and remains optimistic about future plans.

After a brief pause, the stock looks set to test higher levels given the good rise in buying activity. Currently, MAHINDCIE share price trades at Rs 301 level on NSE. Long-term investors and traders should keep a close watch on this stock for times to come.