Poonawalla Fincorp jumps over 10%; here’s why!
The stock has registered a double-digit gain, on a day when the frontline indices are reeling under selling pressure.
Poonawalla Fincorp, formerly Magma Fincorp, provides loans for cars, commercial vehicles, construction equipment, tractors, used vehicles and SME businesses. The company also provides gold loan financing, housing finance and general insurance.
The stock has registered a double-digit gain, on a day when the frontline indices are reeling under selling pressure. The stock has surpassed its prior all-time high of Rs 302.90, which was marked on January 11, 2022, and with this, it has registered a fresh all-time high.
On the daily chart, the stock has registered a breakout of cup like pattern, the length of the pattern is about 59 trading sessions, while the depth of the pattern is 28.62%. What’s striking is the fact that the stock has witnessed a breakout of cup pattern along with a jump in the volumes. The volume for the day is the highest since the first half of January 2022, while it is above the 50-days average volume as well. The stock has a 50-days average volume of 35.37 lakh, while on Thursday the stock volume was over 145 lakhs.
As the stock is trading at a fresh high, it is above all the short and long-term moving averages. It is trading above 20, 50, 100 and 200-DMA. The daily 14-period RSI is seen rebounding after forming a base at the nine-period average and thus supports the positive bias The daily MACD is pointing northward while sustaining above its nine-period average, validating the positive bias in the stock.
In a nutshell, the stock has registered a breakout of a cup like pattern along with volume confirmation and the oscillators echoing the bullish tone. Hence, we could see the stock extending its current up-move and may touch levels of Rs 360 followed by Rs 390 in the long term.
The stock has delivered handsome returns of over 40% in a month, while in the last one year the stock has jumped over 160%.
Share Market Today
| Indices Name | Price | Price Change (% change) |
|---|---|---|
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