MANAPPURAM - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

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Technical Rating: 3.7

Technical Analysis Summary

• Trend: Reversing from recent highs, showing signs of weakness
• Moving Averages: Price (₹272) is below DMA 50 (₹280) but above DMA 200 (₹251), indicating short-term weakness within a long-term uptrend
• RSI (34.4): Approaching oversold zone, signaling potential support
• MACD (-2.74): Bearish crossover, confirming downward momentum
• Bollinger Bands: Price near lower band, suggesting oversold conditions and possible bounce
• Volume: Significantly above average (1.67 Cr vs 66.8L), indicating strong selling pressure

Entry & Exit Zones

• Support: ₹260 – ₹265 (near recent lows and psychological zone)
• Resistance: ₹280 – ₹285 (DMA 50 and recent swing highs)
• Optimal Entry: ₹265 – ₹270 if RSI stabilizes and volume eases
• Exit Zone: ₹280 – ₹285 if price fails to break above resistance

Positive

• Strong 52-week performance (up 82.8%)
• Low P/E of 14.1 vs industry average of 22.6
• EPS of ₹19.3 and decent dividend yield of 1.29%
• Positive institutional sentiment (FII +0.45%, DII +0.56%)

Limitation

• RSI and MACD indicate bearish momentum
• Quarterly profit decline of -20.9%
• High debt-to-equity ratio (2.51) raises leverage concerns
• ROCE (13.1%) below top-tier benchmarks

Company Negative News

• Concerns over gold loan portfolio performance amid regulatory scrutiny

Company Positive News

• Strong long-term returns and improving digital lending footprint
• Stable asset quality and diversified lending book

Industry

• MANAPPURAM operates in the NBFC sector under financial services
• Peers include Muthoot Finance, Bajaj Finance, and Shriram Finance

Conclusion

MANAPPURAM is currently reversing from its highs with bearish technical indicators and elevated selling volume. While long-term fundamentals and valuation remain attractive, short-term caution is warranted. Traders may consider entry near ₹265 with targets around ₹285, watching for RSI recovery and MACD flattening.