Manappuram Finance Limited (MANAPPURAM) Stock - Complete Technical Analysis - Oct 09, 2024

Technical Analysis of Manappuram Finance: Is a Reversal Coming NSE Stocks

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investing in stocks involves risks, and it's essential to conduct thorough research or consult with a financial advisor before making investment decisions. Manappuram Finance Limited is currently trading at 191.10, a notable 17.06% below its 52-week high of 230.4, reached on July 19, 2024, and 52.45% above its 52-week low of 125.35 from October 26, 2023. This suggests a potential recovery trend as the stock is moving upward from its lows.

Price Trends: The recent trading activity shows some volatility, with sudden price fluctuations observed. For instance, on October 4, the stock opened at 191.49, reached a high of 194.51, but closed lower at 189.30. However, a significant jump occurred on October 9, opening at 184.85 and peaking at 192.35, indicating bullish sentiment.

Support and Resistance Levels: The immediate support level appears to be around 190.78, while resistance is likely near 204.57, based on classic pivot points. Should the stock break above the resistance level, it may signal further upside potential. Conversely, if it falls below the support level, it could indicate a bearish trend.

Volatility and Reversals: The Average True Range (ATR) suggests moderate volatility, which could lead to price reversals. The recent low of 184.00 on October 9 could act as a crucial support point if the stock retraces.

Technical Indicators: The MACD is showing a bearish trend, while the RSI indicates that the stock is nearing oversold conditions. The Stochastic and Williams Percent Range confirm this as they hover in low territory. If the RSI starts moving upward, it could signal a potential reversal. The ADX indicates that the current trend strength is moderate, which aligns with the recent price swings.

Overall, traders should closely monitor the support and resistance levels, along with the indicators for potential buy signals, particularly if a bullish reversal occurs. Keeping an eye on market news and broader economic indicators will also be essential in making informed decisions.