M&M Finance, SBI Card: Financiers eye over 10% upside amid festive cheer

Among consumer financiers, Mahindra & Mahindra and Cholamandalam Investment look strong on charts, while Bajaj Finance and Muthoot Finance need to overcome key hurdles for an upside, indicate charts.

With the festive season just a fortnight away, India Inc will be looking for a healthy sales volume this year on the back of pent-up demand with the easing of pandemic-related worries.

This also bring in focus, consumer finance related stocks. A Crisil report recently pointed out that non-bank lenders' asset growth is expected to jump to a four-year high of 11-12 per cent this fiscal. Fundamental analysts suggest investors can warm up to related stocks but with caveats. WATCH VIDEO
 

Technically, the broader market trend looks positive with the BSE Sensex and Nifty 50 overcoming the respective 60,000-mark and 18,000-mark in the last few trading sessions, and now setting sight to achieve higher trajectory.

Meanwhile, here's an outlook on consumer finance related stocks:-

Bajaj Finance Ltd (BAJFINANCE)

Outlook: Struggling to cross imminent barriers

The NBFC major broke out upward from the “Falling channel” pattern, the next leg of the rally shall emerge above the Rs 7,800 - Rs 7,900 levels, reveals the weekly chart. At present, the stock is encountering a sell-off at Rs 7,600 level. Support for the stock is seen at Rs 7,200 and Rs 7,000 levels. And the overall trend on the charts appears lethargic. CLICK HERE FOR THE CHART

Mahindra & Mahindra Financial Services Ltd (M&MFIN)

Likely target: Rs 260

Upside potential: 14%

Having had a breakout of a “golden Cross” on the weekly set-up, shares of Mahindra & Mahindra Financial Services refuse to fall prey to any bear trap. The stock scaled a fresh 52-week high in the previous session with momentum eyeing higher levels.  So, as long as the support of Rs 220 and Rs 210 are not violated, the bulls are not going to give up easily. The next barrier is Rs 260, where as per the current chart formation stock seems to be headed.  CLICK HERE FOR THE CHART

Cholamandalam Investment and Finance Company Ltd (CHOLAFIN)

Likely target: Rs 950 ( post-closing over Rs 800)

Upside potential:  18%

The share price of finance arm of the Murugappa group soared 12 per cent in August with “Higher High, Higher Low” formation on the monthly chart. Earlier, the stock had scaled highs in February and April even when the broader market underwent sharp corrective move. The stock seems to have resumed the upward outlook after a mild dip lately. Now, a decisive close over Rs 800 could trigger fresh upside to Rs 950 level. A closing basis cushion for the stock exists at Rs 750 level.  CLICK HERE FOR THE CHART

SBI Cards and Payment Services Limited (SBICARD)

Likely target: Rs 1,100

Upside potential:  12%

SBI Cards broke out of the “Golden Cross” formation, exhibits the daily chart. Now this bullish move desires to conquer the immediate obstacle at Rs 970 with aggressive volumes, which the stock seems to be lacking since the pattern breakout. The immediate support for the stock is seen at Rs 914, its 50-day moving average (DMA). Upon breakout, the counter might rally in the direction of Rs 1,100. CLICK HERE FOR THE CHART

Muthoot Finance Limited (MUTHOOTFIN)

Outlook: 200-WMA is a support for bulls

The broader sentiment of Muthoot Finance stock is slightly bearish as the counter failed to display smart pullback in the recent recovery. The immediate support for the stock exists at Rs 1,000 and only upon crossing the gap-down range of Rs 1,163 – Rs 1,093 levels, the stock could see some action. In addition, the counter trades beneath the 200-DMA placed at Rs 1,230 mark, a sign of a depressed stock. Under such circumstances, Rs 999 mark seems to be providing some relief, its 200-weekly moving average (WMA). Thus, until 200-WMA is defended, the stock could avoid a bear grip. CLICK HERE FOR THE CHART