MUTHOOT FINANCE - at very attractive levels to accumulate.

Muthoot finance is the World's largest Gold Financing company.


Pattern expectation- Very likely it may form a cup unless there is a deep market correction in case of which I will update this analysis.

The price broke out of a flag pattern this week.
So the first target expected in this script is 1281 which is about 11.7% returns from the CMP of 1146.
We could be seeing higher targets here if one is prepared to hold longer.
Ideally this should be a buy and forget type of script.

Comment:

Since Nifty is correcting there could be a possibility of the cup breaking support and forming a flag in the near term. So either exit at current price which is at support or keep holding for medium term.

Comment:

The arc i drew was small. However, as i mentioned earlier that there would be a flag formation which happened and today's candle broke out of the flag with a decent volume. Consider this breakout now to follow the arc and arrow in the chart.

Comment:

There was a rally in the past few days on the news of the stock split however now it has been deferred. The stock is fundamentally very very good but if your horizon is very short term, then some correction is expected because of this news. May be the stock could correct till 1000-1100 (assuming). Stop loss I leave at your discretion based on your risk appetite and holding capacity.

Comment:

A good base is being formed. 1088 has once again proved to be the very strong support.