Mixed trend on charts in rate-sensitive stocks post RBI policy outcome

Trend in rate-sensitive stocks remains mixed, with stocks like Manappuram Finance, M&M and Union Bank of India showing resilient up move, while a few others display fragile outlook

Shaktikanta Das, the RBI Governor on Thursday kept the policy rate unchanged for the third time. The projection for CPI inflation has been raised to 5.4 per cent from 5.1 per cent on account of vegetable price surge.

Meanwhile, rate sensitive stocks traded mixed, with indices displaying a deliberate volatility. Shares of Manappuram Finance reached a new 52-week high, while HDFC Bank, Union Bank, DLF traded sluggish. Mahindra & Mahindra shares gained over a per cent and were seen scaling fresh intraday highs. The BSE Sensex and Nifty 50 plunged 0.50 per cen. 

Here’s the technical outlook post RBI rate policy:- 

Manappuram Finance Limited (MANAPPURAM)

Outlook: Bullish trend continues

The broader trend in the Manappuram Finance shares remains highly bullish, with a pattern witnessing a gradual up move, as per the daily chart. The support for the current bias exists at Rs 130, which needs to be considered on the closing basis. The price action denotes a rally to Rs 170-mark. CLICK HERE FOR THE CHART

DLF Ltd (DLF) 

Outlook: support  at Rs 470

While shares of DLF are struggling to break through the hurdle of Rs 520, the support closer to Rs 470 could function as a firm defender. The stock is trading beneath the 50-day simple moving average (SMA), suggesting a weak bias on an immediate scale. The decisive close over Rs 470 might become a reason for sell-off pushing price action towards Rs 420-mark. CLICK HERE FOR THE CHART

Mahindra & Mahindra Ltd (M&M)

Outlook: Breakout over Rs 1,575

While Mahindra & Mahindra shares did shows a weak bias below Rs 1,500-mark, the support of 50-SMA placed at Rs 1,452 held the upside momentum firmly. To breakout on the upside, the stock needs to leap over the hurdle of Rs 1,575-mark, with a conclusive breakout. When this happens, the outreach could see this stock heading towards Rs 1,700. CLICK HERE FOR THE CHART

HDFC Bank Limited (HDFCBANK)

Outlook: Descending triangle 

Shares of HDFC Bank are trading sluggish, and a breach of Rs 1,620 could turn the trend fragile. This pattern would then result in a “Descending Triangle” break down, propelling stock towards Rs 1,500-level. Immediate hurdle comes to Rs 1,660-mark. CLICK HERE FOR THE CHART

Union Bank of India (UNIONBANK)

Outlook: Breakout over Rs 93

To breakout on the upside, the price action must sustain over Rs 93, which it has been falling since past few sessions. When that occurs, a positive rally towards Rs 110 cannot be overlooked, as per the daily chart. Immediate support exists at Rs 85 and Rs 88 levels. CLICK HERE FOR THE CHART