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The stock of Manappuram Finance has been in the limelight over the past two weeks. Last week, the stock rallied 7.5 per cent, breaking above a key medium-term resistance at ₹110. After a minor pause at ₹118, the stock has gained bullish momentum again by rising 4.3 per cent, accompanied by above-average volumes on Tuesday.
Investors with a short-term view can buy the stock at current levels. The short-term trend has been up for the stock since taking support at ₹101 in late March. The stock is trading well above its 21- and 50-day moving averages. The daily relative strength index features in the bullish zone and the weekly RSI has entered this zone from the neutral region. Both the daily and weekly price rate of change indicators feature in the positive terrain, implying buying interest.
Overall, the short-term outlook is bullish for the stock. It has the potential to breach the immediate resistance at ₹125 and extend its uptrend in the near term. Targets are ₹128 and ₹130. Traders can buy the stock with stop-loss at ₹120.
(Note: These recommendations are based on technical analysis. There is a risk of loss in trading.)
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