HDFC AMC, UTI AMC: Charts suggest up to 15% rally in select AMC shares

Selective AMC stocks like HDFC Asset Management Company and Nippon Life India Asset Management may rise up to 15%

Shares of asset management companies will be in limelight following SBI Mutual Fund increased its stake in HDFC Asset Management Company to 6.9 per cent from 2.9 per cent. 

In similar transaction, UK based Abrdn Investment Management offloaded 10.20 per cent stake in HDFC AMC through open market.

Shares of HDFC AMC on Thursday tumbled close to 2 per cent lower, while Nippon Life India Asset Management and UTI Asset Management Company gained 0.80 per cent and 0.50 per cent each.  

Here’s the technical outlook for assets management stocks:-

HDFC Asset Management Company Ltd (HDFCAMC)

Likely target: Rs 2,350

Upside potential: 12%

Post surpassing the 200-day moving average (DMA) set at Rs 1,896-mark, the stock price action is battling to cross the 100-weekly moving average (WMA) placed at Rs 2,094.

Once this hurdle gets overcome, the medium-term bias shall aim at reaching Rs 2,350. The present trend is tilted on the bullish side, as the counter securely trades over the 200-DMA.  CLICK HERE FOR THE CHART

UTI Asset Management Company Ltd (UTIAMC)

Likely target: Rs 800

Upside potential: 9% 

To breakout on the upside, the counter requires to surpass the 200-DMA placed at Rs 723, with aggressive volume. The stock must then show consistency over the same to build bullish underlying momentum. Support for the current trend exists at Rs 679 level. 

While the trend is sideways, major move is expected only above the 200-DMA. A breakout may see a rally heading in the direction of Rs 800-mark, its next crucial barrier, as per the daily set-up.  CLICK HERE FOR THE CHART

Nippon Life India Asset Management Ltd (NAM-INDIA)

Likely target: Rs 300

Upside potential: 15% 

Shares of NAM-INDIA have broken out of the 200-DMA and 50-WMA obstacles, leading to a rally that could rise to Rs 300-level. The trend is robust, with resilient sentiment prevailing underneath.  Support for the bullish bias comes to Rs 240, its last reversal mark. 

The outlook continues to see aggressive structure, as volume follows in accord to the momentum. Moreover, the technical indicator, Relative Strength Index (RSI) is far away from entering the overbought territory, suggesting more scope for upside rally. CLICK HERE FOR THE CHART

Aditya Birla Sun Life Amc Ltd (ABSLAMC)

Likely target: Rs 400

Upside potential: 7.5% 

With the current chart formation resembling “Higher High, Higher Low”, the trend remains in upward direction. Immediate support for the stocks falls at Rs 364, with trend eyeing a rally to Rs 400 level, its 200- DMA. While the current rally has seen sluggish volumes, the price action is not letting sell-off to dominate. CLICK HERE FOR THE CHART