Manappuram Finance Limited (MANAPPURAM) Stock - Complete Technical Analysis - Oct 25, 2024

Manappuram Finance Stock Analysis: Key Support & Resistance, Reversal Ahead

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's recent trading behavior shows a bearish tone with support levels forming around 140. With RSI at 23, the stock is deeply oversold, hinting at a possible near-term bounce. However, bearish indicators like MACD and the Awesome Oscillator remain in negative territory, signaling persistent downward pressure. ADX's value above 40 indicates a strong trend, so any reversal may only be short-lived unless backed by increased demand. Resistance is set around the 157160 range, and price action would need to breach this for a bullish reversal confirmation. Moving averages confirm a bearish trend, with prices staying below the 10, 20, and 50-day EMAs.

For short-term traders, a cautious approach around support at 140 is advisable, with close monitoring of volume for any indication of a reversal. Given the stock's recent price behavior and trend strength, it could experience higher volatility around 175 if the price attempts a recovery. Using ATR as a risk-management tool, traders should set stop-loss levels accordingly. Long-term investors may view any potential bounce as an opportunity for accumulating small quantities, but with the current bearish momentum, risk management remains crucial.