MANNAPURAM FINANCE ................... BUY ......................... CMP ₹109.30
✓ Current Observation: The stock, after registering high of Rs 130.45 in the month of May 2018, saw a vertical fall. The fall halted around the horizontal trendline support placed in the range of Rs 92-96.
✓ At present, the stock has witnessed breakout from downward sloping trendline, along with decent volumes.
✓ The stock is trading above its important short term moving average, i.e. 21-day EMA.
✓ The RSI on the daily chart is trading in bullish zone and it has marked a fresh 14-period high, which is a bullish sign.
✓ The level of Rs 102 is likely to act as a strong support for the stock and this can be maintained as a stop loss.
✓ On the upside, the stock is likely to touch the levels of Rs 117-122.
✓ Conclusion: Considering the breakout of the downward sloping trendline along with decent volumes, we recommend buying this stock for a target price of Rs 117-122, with a stop loss at the level of Rs 102.