M&M, Jio Financial Services and Shriram Finance Show Positive Technical Setups; Analyst Sees Further Upside

Indian equity markets have remained in a consolidation phase in August, with the benchmark Nifty 50 trading nearly 2 per cent below its recent high of 24,774 touched on August 3, 2026.

While the Nifty 50 has remained broadly flat so far this month, the broader market has shown better resilience. The Nifty MidCap 100 has gained around 1.8 per cent, while the Nifty SmallCap 100 has advanced approximately 2.8 per cent.

The relative underperformance of the benchmark has largely reflected weakness across several large-cap stocks.

Against this backdrop, Muthuselvaraj M, Technical Research Analyst at Mirae Asset Sharekhan, has identified three large-cap stocks that appear favourably placed on the technical charts — Mahindra & Mahindra (M&M), Jio Financial Services and Shriram Finance.

According to the analyst, all three counters have technical structures that could support further upside in the short to medium term, although investors need to monitor their respective support and breakout levels closely.

M&M: 'W' Pattern Breakout Signals Bullish Momentum

Target: ₹3,710-₹3,840 | Key Support: ₹3,200

Mahindra & Mahindra (M&M) has emerged as one of the strongest technical setups highlighted by Mirae Asset Sharekhan.

Muthuselvaraj said the stock has broken out of a 'W' pattern, suggesting that the stock could be entering a fresh upward momentum phase.

Based on the chart structure, the analyst sees potential upside towards ₹3,710-₹3,840 in the short to medium term.

The bullish setup is supported by the stock trading above its 20-day and 50-day Exponential Moving Averages (EMAs).

Trading above these moving averages indicates that the short- and medium-term price trend remains favourable.

M&M Momentum Indicators Strengthen

The technical indicators also support the positive outlook on M&M.

The stock's daily Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) have shown positive crossovers, accompanied by strengthening green histograms.

The RSI is holding above 60, indicating strong momentum.

According to the analyst, the bullish structure could remain intact as long as M&M sustains above ₹3,200.

A continued hold above this level could allow the stock to gradually move towards the ₹3,710-₹3,840 target zone.

What Could Invalidate the M&M Setup?

While the technical outlook remains positive, ₹3,200 becomes an important level for investors to monitor.

A sustained breakdown below this support could weaken the bullish pattern and increase the possibility of consolidation.

Traders should therefore watch the stock's price action around the support level along with trading volumes and momentum indicators.

A breakout accompanied by strong volumes would provide additional confirmation of the bullish setup.

Jio Financial Services: Strong Base After 34% Correction

Target: ₹282-₹295 | Breakout Level: ₹267 | Support: ₹234

Jio Financial Services is another large-cap stock that the Mirae Asset Sharekhan analyst believes is favourably positioned on the technical charts.

The stock formed a strong base after correcting around 34 per cent from its peak of ₹338.

Following the correction, the stock has stabilised and is attempting to establish a fresh upward trend.

Muthuselvaraj highlighted that the stock is trading around its 200-day EMA, an important long-term technical indicator.

₹267 Breakout Could Trigger Fresh Rally

The immediate technical hurdle for Jio Financial Services is the ₹267 level.

According to the analyst, this level corresponds with the 38 per cent retracement of the ₹338-₹223 range.

A decisive breakout above ₹267 could trigger renewed upward momentum, potentially taking the stock towards ₹282-₹295 in the short to medium term.

The projected target range represents the next major upside zone for the stock if the breakout is sustained.

₹234 Is the Key Support for Jio Financial

While the setup is improving, the analyst has identified ₹234 as a critical support level.

The stock's ability to remain above this level will be important for maintaining the recovery structure.

A move above ₹267 could strengthen the bullish case, while a sustained fall below ₹234 could weaken the technical setup and increase the risk of further consolidation.

Investors should therefore closely monitor the stock's behaviour around both levels.

Shriram Finance: Higher Tops and Higher Bottoms Indicate Uptrend

Target: ₹1,220-₹1,262 | Support: ₹1,028-₹985

Shriram Finance continues to display a strong upward technical structure, according to the analyst.

The stock has been forming a sequence of higher tops and higher bottoms, which is generally associated with an established uptrend.

The counter has also recently touched a fresh 52-week high, providing further evidence of sustained buying momentum.

Muthuselvaraj expects the stock to move towards the ₹1,220-₹1,262 range in the short to medium term.

Profit Booking Risk Below ₹1,028-₹985

Despite the bullish trend, investors should remain alert to potential profit booking.

The analyst has identified the ₹1,028-₹985 zone as the key support area.

A sustained decline below this range could weaken the current higher-top and higher-bottom structure and signal that the uptrend is losing momentum.

As long as the stock maintains its broader technical structure, however, the trend remains favourable.

Three Stocks Offer Different Technical Opportunities

The three stocks highlighted by Mirae Asset Sharekhan are positioned differently on the charts.

The setups indicate three different stages of technical momentum.

M&M has already witnessed a pattern breakout, Jio Financial is attempting to recover after a substantial correction, while Shriram Finance remains in an established uptrend.

Why Technical Setups Matter in a Consolidating Market

The technical calls come at a time when the benchmark market is struggling to establish a decisive direction.

The Nifty 50 is almost 2 per cent below its August 3 high, while the broader market has continued to outperform.

This divergence indicates that investors are increasingly looking for stocks showing relative strength and independent technical momentum.

In such an environment, stocks with clear breakout patterns, strong moving-average structures or higher highs and higher lows can attract greater trading interest.

However, confirmation remains important because technical breakouts can fail if broader market sentiment deteriorates.

Large-Cap Weakness Creates Stock-Specific Opportunities

One of the notable features of the current market is the relative weakness of several large-cap stocks.

The subdued performance of heavyweight companies has kept the Nifty 50 under pressure even as mid- and small-cap indices have delivered stronger returns.

The three stocks identified by the analyst could therefore attract attention because they are showing technical characteristics that differ from the broader large-cap trend.

However, investors should not assume that technical strength will automatically translate into sustained gains.

M&M: What Investors Should Watch

For M&M, the immediate focus is on whether the stock can sustain its breakout from the 'W' pattern.

The ₹3,200 support remains crucial.

If the stock continues to trade above its 20-day and 50-day EMAs and momentum indicators remain positive, the ₹3,710-₹3,840 range could become the next important zone.

A rise in trading volume accompanying further gains would provide additional confirmation.

Jio Financial: ₹267 Remains the Key Trigger

For Jio Financial Services, the market's attention is likely to remain focused on ₹267.

A sustained breakout above this level could indicate that the stock has successfully moved beyond the consolidation phase following its previous correction.

The next potential upside levels are ₹282 and ₹295.

On the downside, ₹234 remains the important support identified by the analyst.

The stock's position around its 200-day EMA will also remain significant for the medium-term technical trend.

Shriram Finance: Trend Strength Remains Intact

Shriram Finance currently has a more established bullish structure, supported by its higher-top and higher-bottom formation.

The recent 52-week high adds further strength to the technical setup.

The analyst's target range of ₹1,220-₹1,262 suggests that the stock could extend its upward movement if the trend remains intact.

However, traders should watch the ₹1,028-₹985 support zone for signs of trend deterioration.

Technical Indicators to Watch

Investors following these stocks should monitor more than just price targets.

Important technical indicators include:

• 20-day EMA

• 50-day EMA

• 200-day EMA

• RSI

• MACD

• Trading volumes

• Previous resistance levels

• Support zones

• Higher-high and higher-low formations

A combination of price breakout, strong volume and positive momentum generally provides stronger confirmation than any single indicator.

Risks to the Technical View

Technical analysis is based on price and market behaviour and does not guarantee future returns.

A broader market correction could invalidate otherwise positive individual stock setups.

Similarly, unexpected corporate developments, earnings surprises, sector-specific news or changes in investor sentiment can cause stocks to move sharply through technical support or resistance levels.

Investors should therefore use the identified levels as reference points rather than treating the targets as guaranteed outcomes.

Key Levels at a Glance

Mahindra & Mahindra

• Current reference price: ₹3,395

• Technical pattern: 'W' pattern breakout

• Target: ₹3,710-₹3,840

• Support: ₹3,200

• Momentum: Positive

Jio Financial Services

• Current reference price: Around ₹253-₹257

• Technical setup: Strong base after correction

• Breakout level: ₹267

• Target: ₹282-₹295

• Support: ₹234

Shriram Finance

• Current reference price: ₹1,133

• Technical setup: Higher tops and higher bottoms

• Target: ₹1,220-₹1,262

• Support: ₹1,028-₹985

• Trend: Upward

What Could Drive the Next Move?

For these three stocks, broader market direction will remain an important factor.

A sustained recovery in the Nifty 50 could provide additional support to large-cap technical setups.

On the other hand, continued index consolidation could result in more stock-specific trading, making relative strength particularly important.

Investors should also watch market breadth, institutional flows and sectoral performance for confirmation of the broader trend.

Market Outlook

The Indian market remains in a consolidation phase, with the Nifty 50 still below its recent high while mid- and small-cap indices continue to demonstrate relative strength.

In this environment, the three technical setups highlighted by Mirae Asset Sharekhan stand out for different reasons. M&M's 'W' pattern breakout, Jio Financial's potential move above ₹267 and Shriram Finance's higher-top and higher-bottom structure provide distinct opportunities to watch.

For the broader market, a sustained breakout by the Nifty 50 above its recent high would improve the overall technical sentiment and could support wider participation from large-cap stocks. Until then, investors may continue to favour stocks demonstrating relative strength.

The key levels remain ₹3,200 for M&M, ₹267 and ₹234 for Jio Financial Services, and ₹1,028-₹985 for Shriram Finance. Sustaining above these important technical levels would keep the bullish setups intact, while breakdowns could trigger profit booking and renewed consolidation.

Overall, the technical picture for the three stocks remains constructive, but confirmation of breakouts, trading volumes and strict adherence to support levels will be crucial in the current range-bound market.