As asset quality improves in the September quarter, M&M Finance rises 10%.

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In Tuesday’s intraday transactions on the BSE, shares of Mahindra & Mahindra (M&M) Financial Services rose 10% to Rs 197.50 due to an increase in asset quality, with stage 2/3 assets having a sequential improvement of 170bp/100bp in the third quarter. For more than three months, the corporation maintained a good liquidity situation. According to a pre-quarterly release from M&M Financial Services, the business anticipates its Gross Stage 3 to be about 7% as of September 30, 2022 (Q2FY23), down from 8% as of June 30, 2022, and its Gross Stage 2 to be around 10% (down from 11.7% as of Q1FY23).

During the most recent decline in M&M Finance, the stock tested its 200-DMA (Daily Moving Average) at levels around Rs. 176. The stock appears to be attempting a decline now that it has tested the support. 

The stock must consistently trade above its 100-DMA, which is currently at Rs 192.70, in order for the downturn to occur. The retreat rally may continue toward the 50-DMA and 20-DMA, indicating upside objectives of Rs 203.50 and Rs 209.20, respectively, if the stock is successful in doing so.

The important momentum oscillators are also suggesting a potential drop. The stock can find strong support on the downside, below the 100-DMA, at about Rs 185-odd level.

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