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Investors with a short-term perspective can buy the stock of Manappuram Finance at current levels. After a medium-term downtrend, the stock found support at ₹66.4 in early October. However, the stock changed direction triggered by positive divergence in daily relative strength index. The stock has been in a short-term uptrend since registering a 52-week low at ₹66.4 in early October. While trending up, the stock has breached the key resistance levels of ₹75 and ₹80.
On Wednesday, the stock jumped 5 per cent surpassing another key resistance at ₹85 and its 50-day moving average. The stock hovers well above its 21- and 50-day moving averages. Over the last one week there has been an increase in daily volume. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI feature in the neutral region. Moreover, the daily price rate of change indicator hovers in the positive territory implying buying interest.
Overall, the short-term outlook is bullish for the stock. It can continue to trend upwards and reach the price targets of ₹90.5 and ₹92 in the coming trading sessions. Traders can buy the stock with a stop-loss at ₹85.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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