Mahindra Logistics Ltd experienced a significant surge in its shares on Tuesday, as the stock soared by 10.90 percent, reaching an intraday high of Rs 430. However, the gains were short-lived, as the stock retraced more than half of its increase and ultimately closed 3.07 percent higher at Rs 399.65. The trading volume was remarkably high, with approximately 1.33 lakh shares changing hands on the Bombay Stock Exchange (BSE), surpassing the two-week average volume of 12,000 shares. The turnover on the counter amounted to Rs 5.53 crore, contributing to a market capitalization (m-cap) of Rs 2,878.92 crore.
Although the stock’s closing price of Rs 399.65 represented a 14.22 percent increase from its 52-week low of Rs 349.90, observed on March 29, 2023, it had fallen by 29.55 percent from its one-year price of Rs 567.30, which was recorded on September 23 of the previous year. On a year-to-date (YTD) basis, the stock has seen a decline of 19.70 percent.
In terms of technical analysis, market experts noted that the stock appeared bullish but was considered overbought on the daily charts. Analysts identified potential support levels around Rs 400 for Mahindra Logistics. Osho Krishan, a Senior Analyst specializing in Technical & Derivative Research at Angel One, commented on the stock’s recent performance, stating that Mahindra Logistics had been in a downtrend for a considerable period. However, the stock displayed a strong price-volume breakout within the trading zone on that day, which was viewed as a positive development. Krishan advised caution and suggested waiting for a retest of the breakout before taking any action, considering the prevailing downtrend on higher time frame charts. He further highlighted potential support around the Rs 395-400 range, with significant support expected at around Rs 350. On the other hand, resistance was anticipated in the Rs 450 zone.
The market activity surrounding Mahindra Logistics demonstrated its fluctuating nature and the influence of various factors impacting its performance. While the stock experienced a noteworthy increase during the trading session, it later tapered off to settle with a 3 percent gain. The company’s recent developments and market trends will continue to shape its trajectory, leaving investors and analysts alike keenly observing its future performance.
