The rapid spread of coronavirus pandemic (Covid-19) across the globe and the 21-day lockdown imposed by the Indian government in this backdrop is likely to dent the fortunes of India Inc. Despite the stimulus measures by the government and the Reserve Bank of India (RBI), overall markets
and especially the financial sector stocks, including those of non-bank finance companies (NBFCs), have taken a hard knock.
Shares of Bajaj Finance, for instance, slipped 5.7 per cent to a fresh 52-week low of Rs 2,081.50 on the NSE on Tuesday in an otherwise strong market after the company's management team said that over the past 10 days, the company had lost nearly 350,000 customers, impacting its assets under management (AUM) by Rs 4,750 crore. READ ABOUT IT HERE
Here are trends for key stocks in this sector that you should be aware of before initiating a trade.
Mahindra & Mahindra Financial Services Ltd (M&MFIN):
A 'Death Cross' of 50–days moving average (DMA) with 100 DMA and 200 DMA indicates a weak / bearish view. The counter has broken the immediate support of Rs 140 and the daily charts suggest there could be more downside going ahead. There is strong resistance is at Rs 160 levels. CLICK HERE FOR THE CHART
Bajaj Finance Ltd (BAJFINANACE):
The recent gap down has dented the upside momentum in this counter. Going forward, unless the range of Rs 2,500 to Rs 2,424 level is not crossed, a positive sentiment may not emerge. On the other hand, any dip below Rs 2,100 on a closing basis may lead to further downside towards Rs 1,900 levels in the days ahead. CLICK HERE FOR THE CHART
Manappuram Finance Ltd (MANAPPURAM):
A short-term breakout can be seen as per the daily chart. The formation is identical to “Double Bottom”. However, the volumes on breakout have not been satisfactory and hint at a selling pressure at higher levels. The immediate support comes at Rs 84 and a rally towards Rs 120 levels may emerge if the volumes support the upside. CLICK HERE FOR THE CHART
Muthoot Finance Ltd (MUTHOOTFIN):
The counter has registered a strong reversal after dipping below Rs 500 levels recently. The current formation suggests a likely consolidation in the range of Rs 580 to Rs 650 levels. For the counter to breakout of this range, the selling pressure near the Rs 650 zone needs to be absorbed with strong volumes along with a large green candle. The overall view remains stable and a rally towards breakout levels cannot be ruled out. CLICK HERE FOR THE CHART
Shriram Transport Finance Co. Ltd (SRTRANSFIN):
A 'Morning Star' candlestick pattern can be seen on the daily chart. This suggests a positive outlook for the stock till the support level of Rs 440 is held. A major resistance comes in the range of Rs 560 to Rs 580 levels. The counter trades with a positive bias; however, the price is not supportive of the upside. CLICK HERE FOR THE CHART