Big Drivers on D-Street: What should investors do with Manappuram Finance, Raymond Lifestyles and 360 One Wam?

Stocks that were in the spotlight include names like Manappuram Financewhich rose 4.55%, Raymond Lifestyleswhich gained 2.2%, and 360 A Wamwhose shares rose 3.3% on Monday.

Here’s what Ameya Ranadive CMT CFTe, senior technical analyst at StoxBox, recommends investors do with these stocks when the market resumes trading today.

Manappuram Finance is currently trading at Rs 148, having plunged 18% in the last two trading sessions and losing more than 25% of its value since the beginning of the month. The drop 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 sharp sell-off.Technically, the stock looks extremely weak after breaking above its crucial support level of Rs 160. The drop has been accompanied by a significant increase in trading volumes (more than 25 times the average seen in the last two trading sessions), further highlighting the strong bearish trend. feeling. The Relative Strength Index (RSI) has fallen 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 guidelines and the stock shows signs of recovery.

Recently listed Raymond Lifestyles has seen significant value erosion, falling almost 30% from its listing price of Rs 3,020 in just a month. The stock has spent most of this time trading within the tight 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 overcome for the past month. If the stock is able to sustain above Rs 2,450 for some consecutive trading sessions, we could witness strong bullish momentum, which could push the price towards the range of Rs 2,800 to Rs 3,000.

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. Additionally, the stock has seen a notable rise 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 nullified, indicating higher downside risks.

360 One Wam is currently trading at Rs 1,108 and is on the verge of a breakout, hovering around the crucial resistance zone of Rs 1,115 to Rs 1,120. The stock has been trying to break above this level since August, but has so far failed to sustain the move. However, recent technical indicators suggest that a breakout may be imminent.

The Relative Strength Index (RSI) has improved significantly, rising from 40 to 56, indicating growth bullish momentum. Meanwhile, the average directional index (ADX) stands at 18, indicating low but building trend strength. The stock is also positioned favorably above its 20-day, 50-day, 100-day, and 200-day exponential moving averages (EMA), and has consistently received support at the 20-day EMA over the past few sessions.

At current levels, 360 One WAM presents a good buying opportunity. A sustained break above Rs 1,120 could generate further bullish momentum, with potential targets in the range of Rs 1,250 to Rs 1,325 in the medium term.

(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)