Manappuram Finance Ltd Sees Mixed Technical Signals Amid Price Momentum Shift

Price Movement and Market Context

On 12 Jan 2026, Manappuram Finance Ltd’s share price closed at ₹285.20, down from the previous close of ₹309.35, marking a significant intraday drop. The stock traded within a range of ₹278.45 to ₹312.30, indicating heightened volatility. This decline contrasts with the broader market, where the Sensex showed a more modest downturn of 2.55% over the past week. Over the year-to-date period, Manappuram’s stock has declined by 7.52%, underperforming the Sensex’s 1.93% fall.

However, the company’s longer-term returns remain impressive. Over one year, Manappuram Finance has delivered a robust 59.37% return, substantially outperforming the Sensex’s 7.67%. The three-year return stands at 134.44%, more than triple the Sensex’s 37.58%, while the ten-year return is a remarkable 841.25%, dwarfing the benchmark’s 235.19%. These figures underscore the stock’s strong historical performance despite recent short-term pressures.

Technical Indicator Analysis

The recent technical parameter change reflects a nuanced shift in momentum. The overall technical trend has softened from bullish to mildly bullish, signalling a potential pause or consolidation phase rather than a full reversal. This is supported by the daily moving averages, which remain mildly bullish, suggesting that short-term price averages continue to support upward momentum, albeit with reduced conviction.

The Moving Average Convergence Divergence (MACD) indicator remains bullish on both weekly and monthly timeframes, indicating that the underlying momentum is still positive. The MACD’s sustained bullishness suggests that despite recent price dips, the stock retains upward momentum over medium and longer terms.

Conversely, the Relative Strength Index (RSI) on weekly and monthly charts shows no clear signal, hovering in neutral territory. This lack of extreme RSI readings implies that the stock is neither overbought nor oversold, which aligns with the sideways movement observed in Bollinger Bands on the weekly chart. The monthly Bollinger Bands, however, show a mildly bullish stance, hinting at potential upward price expansion in the medium term.

The Know Sure Thing (KST) oscillator presents a mixed picture: mildly bearish on the weekly timeframe but bullish monthly. This divergence suggests short-term caution amid longer-term optimism. The On-Balance Volume (OBV) indicator is bullish weekly but shows no clear trend monthly, indicating that recent buying pressure has been present but not sustained over longer periods.

Dow Theory assessments reinforce the bullish outlook on both weekly and monthly scales, signalling that the stock’s primary trend remains upward despite short-term fluctuations. This is a critical confirmation for investors seeking trend stability in the NBFC sector.

Mojo Score and Rating Upgrade

MarketsMOJO has upgraded Manappuram Finance Ltd’s Mojo Grade from Sell to Hold as of 18 Feb 2025, reflecting improved technical and fundamental outlooks. The current Mojo Score stands at 50.0, indicating a neutral stance that suggests investors should maintain positions with caution rather than aggressively buying or selling. The Market Cap Grade is 3, signalling a mid-tier market capitalisation relative to peers in the NBFC sector.

Such an upgrade is significant as it reflects a shift in analyst sentiment, likely influenced by the stock’s strong historical returns and stabilising technical indicators. However, the Hold rating also signals that the stock faces near-term headwinds, as evidenced by the recent price correction and mixed technical signals.

Comparative Sector and Market Performance

Within the Non Banking Financial Company sector, Manappuram Finance’s performance remains noteworthy. While the sector has experienced volatility amid tightening credit conditions and regulatory scrutiny, Manappuram’s long-term growth trajectory remains intact. Its 5-year return of 63.63% is slightly below the Sensex’s 71.32%, but the 10-year outperformance by a wide margin highlights the company’s resilience and growth potential.

Investors should note that the stock’s 52-week high of ₹320.95 and low of ₹169.10 illustrate a wide trading range, reflecting both the cyclical nature of NBFCs and company-specific factors. The current price near ₹285.20 places it closer to the upper end of this range, which may explain some profit-taking and technical consolidation.

Outlook and Investor Considerations

Given the mixed technical signals, investors should approach Manappuram Finance Ltd with a balanced perspective. The bullish MACD and Dow Theory trends support a positive medium to long-term outlook, while the neutral RSI and sideways Bollinger Bands suggest limited immediate upside without a catalyst. The mildly bearish weekly KST and recent price drop caution against aggressive entry at current levels.

For traders, the mildly bullish daily moving averages may offer short-term trading opportunities, but risk management is essential given the recent volatility. Long-term investors may find value in the stock’s strong historical returns and upgraded Mojo Grade but should monitor sector developments and broader market conditions closely.

Summary

Manappuram Finance Ltd’s recent technical parameter change from bullish to mildly bullish reflects a nuanced shift in momentum amid a volatile market environment. While short-term indicators show caution, medium and long-term signals remain constructive, supported by strong historical returns and an upgraded Mojo Grade. Investors should weigh the mixed technical signals carefully, balancing the stock’s growth potential against near-term risks in the NBFC sector.

With a current price of ₹285.20, the stock trades below its recent highs but remains well above its 52-week low, suggesting a consolidation phase that could precede a renewed uptrend. Monitoring key technical indicators such as MACD, moving averages, and Dow Theory trends will be crucial for timely investment decisions.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →