Stocks that were in focus include names like Manappuram Finance, which rose 4.55%, Raymond Lifestyles, which gained 2.2%, and 360 One Wam, whose shares jumped 3.3% on Monday.
Here’s what Ameya Ranadive CMT CFTe, Sr Technical Analyst at StoxBox, recommends investors should do with these stocks when the market resumes trading today.
Manappuram Finance
Manappuram Finance is currently trading at Rs 148, having plunged 18% over the last two trading sessions and losing more than 25% of its value since the start of the month. The decline comes after the Reserve Bank of India (RBI) imposed restrictions on four non-banking financial companies (NBFCs), citing material supervisory concerns. This regulatory action has weighed heavily on investor sentiment, causing a steep sell-off.Technically, the stock appears extremely weak after breaking through its crucial support level of Rs 160. The drop has been accompanied by a significant surge in trading volumes—more than 25 times the average seen over the last two trading sessions—further highlighting the strong bearish sentiment. The Relative Strength Index (RSI) has dropped to 15.5, indicating oversold conditions.
However, the stock could see some sideways movement in the near term as it consolidates.
Given the regulatory concerns and weak technical setup, the stock remains in a no-trade zone. Investors are advised to avoid any positions until more clarity emerges regarding the RBI’s guidelines and the stock shows signs of recovery.
Raymond Lifestyles
Raymond Lifestyles, recently listed on the stock exchange, has experienced a significant value erosion, declining nearly 30% from its listing price of Rs 3,020 in just about a month. The stock has spent the majority of this time trading within the narrow range of Rs 2,425 to Rs 2,270, testing key resistance levels without a successful breakout.
Currently, Raymond Lifestyles is at a crucial juncture, approaching a breakout level that it has struggled to surpass over the past month. If the stock is able to sustain above Rs 2,450 for a few consecutive trading sessions, we could witness a strong upward momentum, potentially driving the price towards the Rs 2,800 to Rs 3,000 range.
Technical indicators show that the stock’s Relative Strength Index (RSI) has improved from the 40 zone to its current level of 49, suggesting a possible recovery. Moreover, the stock has seen a notable increase in trading volumes over the past week, indicating growing interest from investors.
However, if the stock falls below the Rs 2,250 mark, this outlook could be negated, signaling further downside risks
360 One Wam
360 One Wam is currently trading at Rs 1,108 and is on the verge of a breakout, hovering around the crucial Rs 1,115–1,120 resistance zone. The stock has been attempting to break through this level since August but has so far failed to sustain the move. However, the recent technical indicators suggest that a breakout may be imminent.
The Relative Strength Index (RSI) has improved significantly, rising from 40 to 56, signaling growing bullish momentum. Meanwhile, the Average Directional Index (ADX) stands at 18, indicating a low but building trend strength. The stock is also positioned favorably above its 20, 50, 100, and 200-day exponential moving averages (EMAs), consistently taking support at the 20-day EMA in recent sessions.
At current levels, 360 One WAM presents a good buying opportunity. A sustained breakout above Rs 1,120 could lead to increased upward momentum, with potential targets in the Rs 1,250–1,325 range over the medium term.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
