Buy M&M at around Rs 840-850: Subramanium

Krish Subramanium, Asit C Mehta Investment Intermediates is of the view that one can buy Mahindra and Mahindra at around Rs 840-850.

Subramanium told CNBC-TV18, "Maruti has given a very clear breakout. But one thing we have to keep in mind is that these stocks have risen more on the back of some sort of short-covering because you have some pessimism around this counter so probably we could see some sort of plateauing of the stock will be around 1450-1475 levels so one has to be little cautious." He further added, "The stock which is showing very good momentum currently is M&M. Post the results it has been relatively on fire., This could be a classic case where we could go and buy on dips. Around Rs 840-850 it is a very good stock to pick. Tata Motors I was expecting some sort of support emerge out of around Rs 257 levels. But post the yesterday’s announcements the auto stocks also sold off but Tata Motors around this levels should be a decent buy. Probably to take a cautious approach, maybe I will buy at 262 call and maybe sell a 270 or 280 call just for a short-term bounce."