What is the outlook for Manappuram Finance. Can I buy this share at current levels for a medium- or long-term?

Rajeswari, Coimbatore 

Manappuram Finance (₹145.20): The stock has been in a free fall since the beginning of this month. The earlier uptrend has been clearly reversed now. The downtrend is strong now. Resistance is in the ₹155-₹160 region. Support is at ₹130. If the stock manages to bounce from around ₹130, it can see a corrective rise to ₹155-₹160. But a rise beyond ₹160 will need some strong positive trigger. As long as the stock stays below ₹160, the bias will remain negative.

That will also keep the chances high for the stock to break ₹130 in the coming weeks. Such a break can drag Manappuram Finance share price down to ₹100-₹95 in the coming months. This ₹100-₹95 zone is a strong long-term support. The stock will become a very good buy at this level. From a long-term perspective, a rise from around ₹100 will have the potential to take Manappuram Finance share price up to ₹200-₹250 and higher in the coming years. So, wait for more fall and then buy near ₹100.

I have bought NHPC shares at ₹98.17. What is the long-term outlook for this stock?  

Subith, Kochi

NHPC (₹78.50): The stock peaked at ₹118 in mid-July and has tumbled over 30 per cent from there. The trend is down. There is room for more fall within the current downmove. Strong support is in the ₹70-₹65 region which can be tested in a month or two. This ₹70-₹65 is a strong support zone where the current fall can find a bottom. We can expect the stock to reverse higher from this support zone. That leg of rally can take NHPC share price up to ₹100-₹120 again.

Assuming that you are a long-term investor, buy more at ₹72 and ₹68. Keep a stop-loss at ₹62. Move the stop-loss up to ₹82 when the price goes up to ₹95. Revise the stop-loss further up to ₹100 when the price touches ₹110. Exit the stock at ₹125. Please note that you may have to wait patiently for the above-mentioned reversal and the rally to materialise.

I have shares of SBI Cards and Payment Services. My average purchase price is ₹1,118. I have been holding this stock for a long time. Can I continue to hold it for another year?

Priyadharshan, Anakode, Kerala

SBI Cards and Payment Services (₹691.95): The stock has been in a downtrend for about three years now. Though it is getting support around ₹650, the stock is not getting strong buyers to begin an uptrend. In the short-term, a fall to ₹660-₹650 looks likely from here in the next few weeks. A bounce from around ₹650 can take it up to ₹800 again. A strong rise above ₹800 is needed to go back up to ₹900-₹1,000 levels. Failure to breach ₹800 can keep the stock in a range of ₹650-₹800 for some time. 

On the other hand, if the stock declines below ₹650, it can fall to ₹500. Even if you accumulate at current levels, it is not evident on the charts that the price can go towards ₹1,000 from here. So, it is better to exit the stock at current levels and accept the loss. It may not be worth to wait and hope the share price to go up. You can consider reinvesting the sale proceeds from this position in some other stock. You can even consider buying NHPC on dips and follow the strategy given in the previous query.

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