MRF can hit Rs 120,000, technical charts suggest; support at Rs 96,000 mark

Shares of MRF scaled a millstone crossing Rs 1,00,000-level on Tuesday. A fresh breakout shall see this counter heading higher in the coming sessions. 

The recent consolidation in the range of Rs 99,000 to Rs 95,000 level, post the upward rally that now resembles a “Flag pattern” indicates a robust underlying strength.

For an immediate swing, support of Rs 98,500 could be placed for an upward bias. Short-term support exists at Rs 96,000-mark followed by Rs 95,000 level.

There is also a breakout of “Golden Cross”, on the daily chart, which further strengthen the positive bias. The trend turns favourable for a bullish long term perspective.

As per the weekly set up, stability over Rs 95,000-mark shall build sturdy underlying momentum to rally further. Any weakness could see accumulation closer to Rs 95,000 level.

The monthly chart denotes a “Higher High, Higher Low” formation, which continues to bolster the upward bias. The trend on the longer time frame appears promising, with price heading in the direction of Rs 1,20,000 level.

Overall trend of the MRF shares has become lucrative and highly optimistic following decisive rally over the key hurdle of Rs 95,000. The short-to-medium trend is poised for 20 per cent upside. CLICK HERE FOR THE CHART