HDFC AMC, UTI AMC: AMC stocks may fall up to 15% on debt fund tax blow

Selective AMC stocks like Nippon Life India Asset Management and Aditya Birla Sun Life Amc could slip up to 15 per cent, show technical charts

Shares of Asset Management Company slipped to fresh 52-week lows on Friday, after the Government of India proposed investment in mutual fund; below 35 per cent in equities, shall be considered as short-term capital gains. Also, debt funds invested for a period of over three years will be eligible for long-term capital gains tax (LTCG) and their gains will be taxed at 20 per cent with indexation benefits.

HDFC Asset Management Company shares tumbled 4.35 per cent, Aditya Birla Sun Life Amc and UTI Asset Management Company fell over 2 per cent, while Nippon Life India Asset Management lost 1 per cent in the opening trades on Friday. 

Here’s the technical outlook for assets management stocks post government prosing debt fund taxation :-

UTI Asset Management Company Ltd (UTIAMC)

Outlook: Consolidation phase, breakdown beneath Rs 630

The recent candlestick formation indicates a sideways trend, with the possibility of a consolidation phase, as per the daily chart. However, if the stock falls below Rs 630, a fresh round of sell-off may emerge. On the upside, the counter needs to aggressively surpass the hurdle of Rs 720. When that happens, the positive bias may rally in the direction of Rs 760, which is the next major barrier.

A breakdown beneath Rs 630 may see stock dropping towards Rs 570. The Relative Strength Index (RSI) is rising upward, as per the daily chart. Unless the RSI forms a negative crossover, the trend may remain positive.  CLICK HERE FOR THE CHART

HDFC Asset Management Company Ltd (HDFCAMC)

Likely target: Rs 1,500

Downside potential: 10%
 

Shares of HDFC Asset Management hit a fresh 52-week low few ago sessions ago post triggering a “Death Cross”, as per the daily chart. This move has opened fresh downside for the trend, with bias shifting in the bear’s favour. The immediate hurdles fall at Rs 1,800 and Rs 1,950 and the price action seems to witness gradual decline towards Rs 1,500 levels. CLICK HERE FOR THE CHART

Nippon Life India Asset Management Ltd (NAM-INDIA)

Likely target: Rs 175

Downside potential: 15%

Shares of Nippon Life India Asset Management slipped to a fresh 52-week low on Friday, adding more fuel to the bearish trend.  The broad trend has remained downward since November 2021 and the stock has drifted lower, with every possible reversal facing aggressive sell-off.

Now, the immediate barriers come to Rs 220 and Rs 230 levels. Only a move over Rs 230 may bring back some confidence in the stock. The technical indicator, the Moving Average Convergence Divergence (MACD) has formed a negative crossover beneath the zero line, reflecting a negative bias. The stock may fall to Rs 175. CLICK HERE FOR THE CHART

Aditya Birla Sun Life Amc Ltd (ABSLAMC)

Likely target: Rs 300

Downside potential: 14%

The stock fell to new 52-week low in the opening trade on Friday, leading to fresh negative triggers. The trend has been in bears grip since the last couple of sessions and every upside has been capitalized to sell.  The stock now needs to hold ground to regain upward momentum; otherwise the price action may drift towards Rs 300 level.  Immediate resistances fall at Rs 365 and Rs 380 levels. CLICK HERE FOR THE CHART