Muthoot Finance at new high; charts foresee 32% upside for gold loan shares

Muthoot Finance and Manappuram Finance have gained up to 19% thus far in June after RBI eased norms on small-ticket gold loans. Technical charts hint that these stocks can potentially rally 32% more.

Shares of gold loan provider - Muthoot Finance were seen trading at new life-time highs in trades on Thursday, June 19. The stock hit a new all-time high at ₹2,670. In comparison, its competitor - Manappuram Finance stock was seen trading with a marginal loss at ₹264. Manappuram registered its summit at ₹284.90 on the NSE on June 16.  Both stocks - Muthoot Finance and Manappuram Finance have witnessed a sharp rally in the month of June so far, after the Reserve Bank of India (RBI) on June 6 eased norms for small-ticket gold loans.