UTI, HDFC AMC top bets among asset managers; charts hint up to 17% rally

The overall trend for asset management shares continues to remain bullish, say charts.

Shares of UTI Asset Management Company surged 7.8 per cent to Rs 831.65 in an intra-day deals on Monday, amid reports that Tata Group was in final stages of negotiations for acquiring a majority stake in the mutual fund house. 

Tata Group intends to buy close to 46 per cent stake of UTI AMC from Punjab National Bank, Life Insurance Corporation of India, State Bank of India, and Bank of Baroda. In doing so, the merger entity shall become the fourth largest mutual fund in India.

Meanwhile, listed players in the assets management space like HDFC Asset Management Company, Aditya Birla Sun Life AMC and Nippon Life India Asset Management exhibited a mixed trend on Monday. HDFC Asset Management Company stock rose 1 per cent, while Aditya Birla Sun Life AMC and Nippon Life India Asset Management were down 3.3 per cent and 0.20 per cent, respectively.

Here’s the technical outlook on these assets management stocks:-

UTI Asset Management Company Ltd (UTIAMC)

Likely target: Rs 900 and Rs 970

Upside potential: 11% to 17%

UTI Asset Management Company stock has surpassed the critical hurdle of Rs 800, with a resolute gap-up and strong volume structure. With this, the key moving averages like 200-day moving average (DMA) and 100-DMA are on the verge of making a positive crossover. If that occurs, the trend would then see bulls taking this stock to Rs 900 and Rs 970 levels. CLICK HERE FOR THE CHART

HDFC Asset Management Company Ltd (HDFCAMC)

Likely target: Rs 2,500

Upside potential: 11%

After breaking out of the “Inverse Head and Shoulder”, shares of HDFC AMC scaled the barrier of Rs 2,200. This strength has led the stock to rally in the direction of Rs 2,500 level, which is the next key hurdle. As and when this hurdle is conquered, a positive rally would then aim to reach Rs 2,900 level. From a medium-term prespective, cushion that has been bolstering the upward bias for the stock remains at Rs 2020-mark. CLICK HERE FOR THE CHART

Nippon Life India Asset Management Ltd (NAM-INDIA)

Outlook: Breakout over Rs 275 shall see Rs 300

Only a resolute close above the Rs 275 barrier could propel this stock in the positive territory; otherwise the trend is anticipated to remain sideways, as per the daily chart. Immediate support for the stock is seen at Rs 260, and the bias shall stay lethargic as long as the support is is defended. A breakout above Rs 275 would see a rally to Rs 300 level. CLICK HERE FOR THE CHART

Aditya Birla Sun Life Amc Ltd (ABSLAMC)

Outlook: RSI reaching near to 70 value

While the immediate trend remains upward, with the momentum indictor MACD leaping over the zero line, the positive bias may come across selling pressure as the Relative Strength Index approaches closer to the overbought territory of 70 value. The immediate support for the stock is at Rs 440, which needs to be considered on a closing basis. CLICK HERE FOR THE CHART