Can Fin Homes rallies over 5% after Q2 profit rise

Can Fin Homes Limited shares rose over 5% in morning trade on 12 October after Q2 profit grew 9.2% to Rs 274.6 crore. Support is at Rs 700. Can Fin Homes Limited [

] shares rose over 5% in morning trade on 12 October after the Q2 results. The stock traded at Rs 748.55 on the daily chart. Q2 profit rose 9.2% to Rs 274.6 crore from Rs 251.4 crore a year earlier. Net interest income grew 6.65% to Rs 431.5 crore from Rs 404.6 crore. Profit grew faster than net interest income. The update gives no margin or asset quality data, so the quality of the growth cannot be judged. The session opened at Rs 719.20, which was also its low, and touched a high of Rs 756.10. The bounce came near the Rs 700 support, after a fall from the highs above Rs 900. In my view, the stock is attempting a recovery within a larger downtrend, and one morning rally does not show a trend change. Rs 700 is the support, and a fall below it would put lower levels in view. On the upside, Rs 770 is the resistance, and a move above it would bring a stronger recovery into focus. Neutral stance while price trades between Rs 700 and Rs 770. Disclaimer: I do not hold any position in this. This content is for informational purposes only and is not a recommendation to buy or sell. Investments in securities are subject to market risks. Please read all related documents carefully before investing.