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Investors with a short-term horizon can buy the stock of Manappuram Finance at current levels. The stock jumped 6.8 per cent accompanied by above average volume, breaking above a key near-term resistance at ₹111. After a sharp fall in the early March, the stock recorded a 52-week low at ₹75 in late March and found support.
Triggered by positive divergence on the daily as well as the weekly relative strength index and the daily price rate of change indicator, the stock reversed direction. Since late March, the stock has been in a short-term uptrend. Recently, the stock breached its 21-day moving average and trades well above this average line. Moreover, the breach of the key resistance at ₹111 reinforces the bullish momentum.
The daily RSI is charting higher in the neutral region towards the bullish zone and the weekly RSI has entered the neutral region from the bearish zone. There has been an increase in daily volume over the past three trading sessions. The short-term outlook is bullish for Manappuram Finance. It can continue to trend upwards and reach the price targets of ₹119 and ₹122 in the coming trading sessions.
Traders with a short-term view can buy the stock with a stop-loss at ₹111.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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