In the previous session, the market opened on a flat note but soon slipped into a negative territory. However, the NIFTY Index recovered from its low as the day progressed and made a new high near 16589. The overall session was volatile for the market. Technically, the Index formed a bullish candle on the chart. At the same time 14 days RSI is in the overbought zone. Hence, a cautious approach is advised for the day. Traders should protect profit at higher levels.

Look at the below research report of ‘Stocks to Buy for – Tuesday, August 17, 2021’ before the market opens.

Mahindra & Mahindra Ltd.

On the daily chart, we can see that M&M stock prices have formed a ‘V- Bottom’ pattern and are currently placed above the Neckline resistance zone. In the last trading day, a rising window occurred on the chart. Previously, stock witnessed a sudden price fall near 725 levels and then a complete retracement of the bearish movement after that. Buying confirmation was made with the help of 14 days RSI which is currently placed near 63.52, indicates bullishness.

In short, the trend for M&M looks to be positive for now. Now a move above previous day high will confirm the uptrend i.e., above 804 level. Add more on dips around support levels near 790. According to Fibonacci Retracement theory, price can move towards 840 and then 917 levels. This view is valid as long as 770 stays protected on downside.