Jio Financial listing: NBFC stocks must cross key hurdles to resume rally

Listed NBFC stocks are currently facing selling pressure at higher levels, show technical charts

The share price of Jio Financial Services was discovered at Rs 261.85 on Thursday; following the demerger of Reliance Industries, which owned by the billionaire Mukesh Ambani. Share price of Reliance was quoting at Rs 2,610 at 11 AM.

Mukesh Ambani demerged his financial service business to tap the growing market. This entity will be listed separately as Jio Financial Services on the stock exchanges. 

Meanwhile, existing NBFC shares such as Manappuram Finance, Cholamandalam Investment and Finance Company, L&T Finance Holdings, and Bajaj Finance were seen trading sluggish on Thursday.

Here’s the technical lutlook of these NBFC shares:-
 

Manappuram Finance Limited (MANAPPURAM)

Likely target:  Rs 170 (once hurdle range is crossed)

Upside potential: 25%

The stock is struggling to cross the hurdle range of Rs 135 to Rs 132 since April of this year. The stock did make efforts to leap over the same hurdle in the current series, but was unsuccessful. When this hurdle range is broken through, the breakout could see a rise in the direction of Rs 170-level. Support exists at Rs 120-level. CLICK HERE FOR THE CHART

Cholamandalam Investment and Finance Company Ltd (CHOLAFIN)

Likely target:  Rs 1,350 (once hurdle is crossed)

Upside potential: 11%

While there is a selling pressure near Rs 1,200-level, the positive bias is intact over the support of Rs 1,100. Unless the stock breaches this support mark, the underlying trend to make efforts to cross the higher resistance. The following support exits at Rs 1,050-mark. Breakout over Rs 1,200 could see a move to Rs 1,350. CLICK HERE FOR THE CHART

L&T Finance Holdings Limited (L&TFH)

Outlook: Trading in a tight range
 

The stock is trading in a narrow range of Rs 140 to Rs 125 levels. Any breach of this trading range could assist in determining the next move. The stock’s previous support of Rs 115 suggests an optimistic momentum prevailing at current juncture. Breakout over Rs 140 might reach to Rs 165-level.  CLICK HERE FOR THE CHART

Bajaj Finance Ltd (BAJFINANCE)

Outlook: Medium-term support holds the upward bias.

Shares of Bajaj Finance are well placed over the support of Rs 7,300-level, as per the daily chart. Next support exists at Rs 6,800. Only a breach of Rs 6,800-mark, the medium-term outlook may shift in bears control. Until then, a move towards Rs 7,900 cannot be neglected. CLICK HERE FOR THE CHART

IDFC Limited (IDFC)

Outllook: Hurdle range Rs 120 to Rs 117

Shares of IDFC may breakout on upward trend once the hurdle of Rs 120 to Rs 117 range is surpassed, as per the daily chart. The immediate support for the stock appears at Rs 109, which needs to be honoured on the closing basis. The 50-day moving average (DMA) is located at Rs 102, which also acts as a support. A breakout over the hurdle range could see Rs 135.CLICK HERE FOR THE CHART