Sizzling Stocks - M&M Financial Services, Indiabulls real estate ::Business Line

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M&M Financial Services: (Rs 228.8)

Following the announcement of better than expected results in the quarter ended March, the stock skyrocketed to register a 52-week high at Rs 247 on April 25. But the stock gave away some of its gains and finished the week by advancing 13.5 per cent. It conclusively broke through a key resistance at around Rs 215 during its recent rally. We notice that there is an increase in daily volume over the past four trading sessions. The stock is hovering well above its 21- and 50-day moving averages.

The daily relative strength index is featuring in the bullish zone and weekly RSI has entered this zone.

Both long and medium-term trends are up for the stock. However, it is presently testing important resistance at Rs 242.

A decisive breakthrough above this resistance will take the stock to new highs. On the other hand, inability to surpass Rs 242 will confine the stock to moving sideways in the band between Rs 215 and Rs 242. Strong decline below Rs 215 will mar the stock's medium-term uptrend and pull it lower to Rs 200 and then to Rs 180 in the medium term.

Indiabulls Real Estate (Rs 70.4)

The stock continued its bullish momentum in the previous week, following its March quarter results report.

It had gained almost 16 per cent backed by good volumes. After taking key support at Rs 50 in early April, the stock reversed direction triggered by positive divergence in daily indicators. Since then, it has been on a short-term uptrend.

The stock is currently testing resistance at Rs 70. A strong rally above this level will push the stock higher to Rs 82 level in the medium-term. It has significant long-term resistance at Rs 82.

This resistance has to be broken out for reinforcing medium-term bullish momentum and take the stock higher to Rs 90 and then to Rs 100 in the upcoming months.

Failure to surpass Rs 82 will keep the stock trading between Rs 70 and Rs 80 range.

Key supports are positioned at Rs 65, Rs 60 and then at Rs 50. An emphatic decline below Rs 50 will pull the stock in to bears’ grip and take it lower to Rs 42 in the medium term.