Manappuram Finance, Federal Bank: 5 financial stks that look weak on charts

A recent gap down below 23,450 has dampened the upside bias in Nifty Bank.

The stock market was trading in the positive territory in the morning deals on Tuesday. Financial stocks were in focus after the Reserve Bank of India-appointed (RBI-appointed) KV Kamath committee on a resolution framework for bank loans stressed on account of the pandemic outlined parameters to deal with 26 sectors buffeted by Covid-19. READ MORE

Nifty Bank was trading flat at 22,963 levels while Nifty PSU Bank was down 0.5 per cent at 1,453.50 points. 

Below is a look at how Nifty Bank and some of the financial stocks look on charts.

NIFTYBANK: The recent gap down below 23,450 has dampened the upside bias. Thereafter continuous negative closes have built more negative opinion. The nearby support comes in at 50-day moving average (DMA) at 22,388 levels, which seems to get tested soon. The trend indicates a sell on rise module with higher side to witness the selling momentum towards 24,000 levels. Remember, Nifty Bank showed a bearish sentiment at 200-DMA recently, and failed to conquer the same. CLICK HERE FOR THE CHART
 
L&T Finance Holdings Ltd (L&TFH): As the counter fell below the immediate support of 50-DMA placed at Rs 65.25 levels, the sentiment has turned into a mild weakness. After this scenario, the breach of resistance of Rs 68.60 levels becomes a tough task. Going forward, a breach of 100-DMA placed at Rs 62.80 may see Rs 58 and Rs 55 levels. The Relative Strength Index (RSI) has made a negative crossover and moving towards the oversold condition of 30 value. CLICK HERE FOR THE CHART
 
Bank of Baroda (BANKBARODA): The immediate resistance is at Rs 56 levels with trend moving towards Rs 50 and Rs 47 levels. A clear moving average (MA) breakdown can be seen as per the daily chart. This, along with a breach of the zero line on Moving Average Convergence Divergence (MACD) further instigates a weak view. Unless, this counter conquers 50-DMA placed at Rs 48.40 levels decisively, the downside may see Rs 40 and Rs 38 in the coming sessions. CLICK HERE FOR THE CHART
 
Federal Bank Ltd (FEDERALBNK): The weekly chart indicates a “Bearish Engulfing” pattern with a negative sentiment.  This pattern reveals the weakness of price, especially the strength and momentum. As RSI makes a negative crossover on the weekly chart, the negative bias gets a firm judgement. The immediate resistance is at Rs 56 levels with trend moving towards Rs 50 and Rs 47 levels. CLICK HERE FOR THE CHART
 
Manappuram Finance Ltd (MANAPPURAM): This counter may be showing a reversal around 100-DMA, but the technical indicators RSI and MACD are not in favour. The MACD is trading below the zero line with no indication of reversal. The RSI trades near 40 value with 50 witnessing selling pressure. The trend is weak and the price may see lower levels towards Rs 135 levels. The higher resistance stays at Rs 153. CLICK HERE FOR THE CHART
 
Shriram Transport Finance Co. Ltd (SRTRANSFIN): A massive sell-off below Rs 725 has pushed this counter in the bearish zone. Until the price does not cross Rs 715 decisively, the upside bias should see follow-up selling pressure. A major breakdown is expected below the 100-DMA placed at Rs 662 levels. If that happens, a downfall may see Rs 640 and Rs 625 in the near term. CLICK HERE FOR THE CHART