Why is Mangal Credit & Fincorp Ltd falling/rising?

Robust Short-Term Performance Against Market Benchmarks

The stock’s recent trajectory has been impressive, particularly when compared to the Sensex index. Over the past week, Mangal Credit & Fincorp Ltd has delivered a return of 9.79%, while the Sensex declined by 2.43%. This divergence underscores the stock’s resilience amid broader market weakness. Similarly, over the last month, the stock gained 4.10%, contrasting with the Sensex’s 4.66% fall. Year-to-date figures also favour the company, with a 4.17% rise against the Sensex’s 4.32% decline. These figures indicate that investors have shown increasing confidence in the company’s prospects despite a challenging market environment.

Consistent Gains and Rising Investor Interest

Mangal Credit & Fincorp Ltd has been on a four-day winning streak, accumulating an 11.61% return during this period. The stock opened with a gap up of 2.38% on 23-Jan, signalling strong buying interest from the outset. Intraday, it reached a high of Rs 175, marking the peak for the day and reinforcing the bullish sentiment. Notably, delivery volumes on 22-Jan rose by 3.8% to 12,740 shares compared to the five-day average, indicating heightened investor participation and confidence in the stock’s upward momentum.

Technical Indicators and Liquidity Support

From a technical standpoint, the stock is trading above its 5-day, 20-day, and 50-day moving averages, which typically signals short to medium-term strength. However, it remains below the 100-day and 200-day moving averages, suggesting some longer-term resistance levels are yet to be overcome. The weighted average price indicates that more volume was traded near the lower price range of the day, which may imply cautious profit-taking or consolidation at current levels. Liquidity remains adequate, with the stock’s traded value supporting transactions up to Rs 0.02 crore comfortably, making it accessible for active traders and investors alike.

Long-Term Outperformance Highlights Investor Confidence

Looking beyond the immediate price action, Mangal Credit & Fincorp Ltd has demonstrated significant long-term growth. Over three years, the stock has appreciated by 50.47%, substantially outperforming the Sensex’s 33.80% gain. Even more striking is the five-year return of 200.17%, which dwarfs the Sensex’s 66.82% increase. This sustained outperformance reflects the company’s ability to generate value for shareholders over extended periods, likely contributing to the current positive sentiment among investors.

Summary: Why the Stock Is Rising

The rise in Mangal Credit & Fincorp Ltd’s share price on 23-Jan can be attributed to a combination of factors. The stock’s consistent short-term gains, highlighted by a four-day rally and a strong weekly return, have attracted investor interest. This is further supported by increased delivery volumes, signalling genuine buying rather than speculative trading. The company’s ability to outperform the Sensex and its sector over multiple time frames reinforces confidence in its fundamentals and growth prospects. Additionally, technical indicators suggest positive momentum in the near term, while liquidity levels ensure smooth trading activity. Collectively, these elements have contributed to the stock’s 5.55% rise on the day and its ongoing upward trend.

Investors should note that while the stock is showing strength, it remains below longer-term moving averages, which may act as resistance. Nonetheless, the prevailing market sentiment and historical performance provide a solid foundation for the current bullish trend.

Get 2 full years of MojoOne Premium for only Rs. 12,999. Subscribe for 1 year and we'll add another year FREE. Offer valid for a limited time. Start Saving Now →