MANAPPURAM -- cup and handle

Attached daily chart of manappuram shows a channelled upmove with a cup and handle formation at lower end of channel. Breakout past 38 with vols can take stock to 45 plus levels quickly.

The bounce may be corrective in nature and may face resistance at upper end of channel at around 45-47.

From the charts one can read that the stock after making a low of 19 in May 2012 the stock hit a high of 43 in Sept. Thereafter there is a pull back at 32 in Nov. The stock has been making higher tops and bottoms which is a good sign. Buy close to 33-36 for a good upside till 43 where it will make another double top. Next target thereafter is 48-50. The stock is trading above its 50 DMA at 37 and 200 DMA at 33 which should be noted.

Hi Hitesh,

As written above, today the stock touched 46 today. Great going for this one

well its trading at 16 level today

Mannapuram was locked at 20 percent upper circuit for the second consecutive session on Friday after Reserve Bank of India eased norms for gold loan financing companies. Bank of America Merrill Lynch has upgraded the stock by 2 notches to a buy and raised target price by 91 percent to Rs 25 apiece post RBI’s easing of loan-to-value (LTV) norms. According to the brokerage house, RBI’s easing of norms is a big positive that will create a level playing field for the gold loan financing company. “Return on equities (RoEs) will rise to 12 percent in FY15 and 15 percent in FY16,” Bank of America Merrill Lynch report said. The central bank on Wednesday hiked loan-to-value ratio (LTV) to up to 75 percent for loans against the collateral of gold jewellery from the present limit of 60 percent with immediate effect. Hence, the people seeking loan against gold jewellery can now borrow more money. In case of apprehensions on certifying the purity of the gold jewellery accepted as collateral, RBI clarified that the need to give a certificate on the purity of gold cannot be dispensed with. The certified purity shall be applied for determining the maximum permissible loan and the reserve price for auction. At 12:56 hours IST, the stock was trading at Rs 21.75 amid large volumes on the BSE and there were pending buy orders of 548,239 shares, with no sellers available. Meanwhile, its rival Muthoot Finance climbed 17 percent to Rs 151 today, in addition to 20 percent upmove in earlier session.