Manappuram Finance forms opening bullish Marubozu candle

The stock of Manappuram Finance Limited has formed an opening bullish Marubozu candlestick pattern on the daily time frame. The opening bullish Marubozu candle has no shadow extending from the open price end of the body.

Opening bullish Marubozu candle indicates an extreme bullishness. The expectation is that the sudden change in the sentiment will be carried forward, over the next few trading sessions and hence, the traders should look for a buying opportunity.

The stock after a span of almost one month has managed to successfully close above its crucial short-term moving average i.e. eight-day EMA. The reversal is confirmed by the above 50-day average volumes. The positive crossover on 14-period daily RSI and stochastic supports an overall bullish price structure.

In near-term, the zone of Rs 109-Rs 110 is likely to act as an immediate resistance. A decisive close above this level would lead to an extension of the pullback towards Rs 120, followed by Rs 134. While on the downside, the zone of Rs 78-74 is likely to act as a major support. 

On Wednesday, the stock of Manappuram Finance closed at Rs 104 per share, surged by 23.37 per cent. The stock opened at Rs 80 per share and hit an intraday high of Rs 105.35 and a low of Rs 80 per share on NSE.