Financial Services Sector: Deep Dive

JC Parets
June 10, 2021

The Financial Services sector has been displaying resilience. Within this universe, there are certain stocks that are showing strength and moving past their resistance.

Let's see what the charts have to say!

With the breakout in Nifty 50, several indices have resumed their trend on the upside. Financials is another sector that has been hinting at the same.

In this post, we're also going to take a look at some of the lesser discussed stocks in Financials.

Here are some stocks at crucial levels.

First up, we have Cholamandalam Financial Holdings. The stock has moved past its resistance of 620 and is on the way to the target! After halting at the overhead supply zone for quite some time, the price broke out along with the indicator moving into bullish momentum territory.

We are positive above the level of 620, with a  target near 780.

Click on chart to enlarge view.

One stock that has been on the radar is BSE. The price witnessed a phenomenal move a couple of weeks back and has managed to hold on to the highs made. We can see a big base breakout in this particular chart that has been in place for three years. We're always happy when we see smiley faces! The indicator making itself comfortable in the bullish momentum territory is another positive.

We are bullish above the level of 830, with a target close to 1,180.

Muthoot Finance has made regular appearances on our conference calls. Over the last week, however, we got a price confirmation in the form of a breakout. The price moved past the level of 1,256, which has been in place for months now! With this breakout, the price is trading close to its all-time highs and sustaining at those levels.

From narrow ranges come swift moves. And this could be just the example for that!

We are bullish above the level of 1,256 with a target near 1,990.

ICICI Prudential Life Insurance is another name that has broken out of a big three-year base. As the price continues to trade near the highs, the indicator has been trying to make up its mind with regard to the move. The move in this particular stock is positive only so long as the price manages to stay above the level of 537. Let's see if this smiley face continues to spread joy.

We are bullish above the level of 537 with a target near 730.

Next up is another base breakout. CSB Bank has moved past its overhead supply zone near 315 and looks good for the next leg of the race! The positive indicator placement only adds to the existing positive setup.

We are bullish above the level of 313 with a target near 450.

Max Financial Services is another one of those names that have been consolidating for some time now. MFSL broke out above its resistance zone of 935 and has been maintaining those levels this week as well. With the breakout out in place and the indicator confirming the inherent strength, the price looks ready to go.

We are positive above the level of 935 with a target near 1,345.

Now for some names that we're keeping on our radar.

REC Ltd is the first one on the list here. The stock made a sharp recovery from sub-130 levels and has been displaying strength. The price is currently fighting it out with a long-term overhead supply zone. A breakout above the level of 168 would translate to a four-year base breakout.

Now that's something that we'd like to get a confirmation on before acting prematurely.

We are positive only if the price moves past 168. The next target to track would then be near 225.

Another name that has performed well over the past has been Capri Global. Currently, the price is halting at its resistance of 535. The price has been experiencing a smart move since last year. A breakout above the level of 535 is what we'd wait for. We'd then look for a target near 820.

CDSL has been a crowd favourite! The price has made massive strides since last year. The price is holding off at the current level of resistance close to 980. This is similar to a flag and pole pattern whereby after a sharp move, the price consolidates sideways for a short span of time only to zoom away again.

We are bullish on CDSL only above the level of 980 with a target near 1,475.

Cholamandalam Investment & Finance has been moving sideways for quite some time. The price has found it difficult to move past the level of 585. In a scenario where the Financial Services are performing well, Cholamandalam will benefit from the advantage of that tailwind.

We are positive only above 585, with a target near 732.

This was a round-up of the stocks from financial services that are trading at crucial levels. A pick up in momentum and activity will surely reflect in these names as well.

Thanks for reading and please let us know if you have any questions.

Allstarcharts Team

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