Technical Analysis

Manappuram Finance (₹116.3): Sell

Yoganand D BL Research Bureau | Updated on August 14, 2019 Published on August 14, 2019

Investors with a short-term perspective can sell the stock of Manappuram Finance at current levels. The stock has been on a short-term downtrend since encountering a key resistance at ₹144 in June this year. While trending down, the stock breached a key support at ₹125 in mid-July and continued to trend downwards. This level now acts as a key resistance.

Following a corrective rally, the stock met with a key barrier at ₹125 and tumbled 6 per cent accompanied by above average volume on Monday. With this fall, the stock appears to have resumed the short-term downtrend. It trades well below the 21- and 50-day moving averages.

Both the daily and the weekly relative strength indices feature in the neutral region with a downward bias backing the stock’s downtrend. Also, the daily price rate of change indicator is on the brink of entering the negative terrain from the positive while the weekly price ROC hovers in the negative terrain.

The short-term outlook is bearish for the stock. It can continue to trend down and reach the price targets of ₹111.5 and ₹109 in the upcoming sessions. Traders can sell with a stop-loss at ₹119.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

Published on August 14, 2019
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