Trade Idea of The Day - Muthoot Finance Ltd Target Rs.105 - Religare Broking Ltd
Muthoot Finance Ltd
BUY 30 MAR 3300 CALL SELL 30 MAR 3500 CALL Muthoot Finance Ltd Entry Range 70 – 75 Target Range 105 Stop Loss 55
Rationale
* On the daily chart MUTHOOTFIN has corrected toward the 200-day EMA and is showing signs of stabilization after the recent decline. This level historically acts as a strong demand area, indicating potential base formation.
* The recent price action indicates buying interest emerging near the long-term moving average, suggesting a possible bullish reversal setup if the stock sustains above this support region
* Key momentum indicator, RSI is hovering in the range of 40 to 45 and showing early signs of recovery, hinting at easing selling pressure and scope for momentum improvement.
* However MACD histogram remains in the negative zone but momentum appears to be flattening and sustaining above 3300–3250 may trigger a recovery toward higher resistance level of 3500 in the coming sessions.
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