Manappuram Finance Jumps 12% after Cr Bain Deal :Target ₹277
Manappuram Finance Stock Analysis: Bain Capital’s ₹4,385 Cr Entry Ignites Breakout — Can It Hit ₹277?
Major News: Bain Capital’s Mega ₹4,385 Crore Investment
Bain Capital has officially entered Manappuram Finance with a massive ₹4,385 crore investment for an 18% stake at ₹236 per share — a 30% premium over the six-month average price. An open offer for an additional 26% stake could increase Bain’s holding to as high as 41.7%. This strategic move has fueled confidence in the stock, resulting in a sharp 12% jump in a single trading session.
Click Here to Read the Full News
Why This Investment Matters
Manappuram Finance, India’s second-largest gold loan provider, now has the backing of global investment powerhouse Bain Capital. This investment not only validates the company’s long-term potential but could also lead to expansion beyond gold loans into other financial verticals.
1. EMA Crossover — Foundation of Sustained Strength
Manappuram Finance’s daily chart displays a powerful bullish setup with price action well above the 20 EMA (₹209.07) and 50 EMA (₹200.13).
A fresh 20/50 EMA crossover has triggered strong buying momentum.
Sustained trading above these levels confirms institutional accumulation and bullish sentiment.
2. RSI in Overbought Territory — A Power Signal
The RSI is at 75.18, firmly in the overbought zone.
Despite typical caution, overbought conditions, when supported by institutional buying, often lead to extended rallies.
3. TSI Turns Bullish After Consolidation
The TSI (True Strength Index) has turned upwards after a tight consolidation phase, signaling trend confirmation and strengthening bullish momentum.
4. Fibonacci Trend-Based Target at ₹277
The price has perfectly respected the 0.618 retracement level at ₹236.30, aligning with Bain’s entry price.
According to trend-based Fibonacci extension, the next potential upside target is ₹277.60.
If market sentiment remains bullish, this could be achieved in the coming weeks.
5. Volume Spike — The Institutional Stamp
A noticeable surge in volume today confirms smart money inflows.
Historical patterns show that such volume breakouts generally lead to sustained up-moves.
FAQs
Q1. Is it the right time to buy Manappuram Finance?
Entry is recommended on dips near ₹223-₹226 for positional targets.
Q2. What are the latest targets for Manappuram Finance?
Immediate: ₹236-₹240
Medium-term: ₹277
Long-term: ₹300+ potential.
Q3. What’s the safe stop loss level?
Place a stop loss below ₹200 (50 EMA level).
Q4. How does Bain Capital’s investment impact fundamentals?
This investment boosts financial strength, strategic growth possibilities, and long-term vision.
Q5. Could Manappuram Finance turn multibagger?
Given strong fundamentals, leadership position, and institutional confidence, yes — with patience and risk management.
CTA:
👉 Follow DalalStreet Insider for insider trading ideas, high-potential breakout analysis, and market-smart investment strategies!
👉 Subscribe now to stay ahead and catch the next multibagger before the crowd!
Statutory Warning: Investing in the stock market involves risk. Please conduct your own due diligence or consult a registered financial advisor before investing. This content is strictly for educational purposes only.
Comments
Post a Comment