Muthoot Finance – Stabilising Near Key Support After Sharp Correction

appears to be stabilising after a notable correction from its recent highs near the ₹4,100–4,200 zone. The stock has retraced toward the ₹3,000–3,200 support region, which historically has acted as a strong demand zone. Recent price action suggests early signs of a potential rebound. Technical Structure After a strong uptrend during the previous cycle, the stock entered a corrective phase and moved lower toward key support levels. Current price behaviour indicates a possible short-term recovery attempt. Key observations: • Price is attempting to hold above the ₹3,000–3,100 support zone, which has historically attracted buying interest. • Stock is trading near the short-term EMA, indicating a possible trend stabilisation. • Stochastic RSI turning upward from oversold levels, signalling improving short-term momentum. • Volume expansion during recent recovery candles suggests renewed participation. Key Levels to Watch Immediate resistance: ₹3,450–3,500 If the stock sustains above this level, the next potential upside zones could be: • Target 1: ₹3,750–3,800 • Target 2: ₹4,050–4,150 (previous swing high zone) On the downside: Immediate support: ₹3,100–3,200 Major support: ₹2,950–3,000 A breakdown below ₹2,950 could weaken the current recovery structure. Fundamental Perspective Muthoot Finance remains one of the largest gold loan NBFCs in India, benefiting from strong demand for secured lending. Key structural drivers include: • Rising demand for gold-backed retail credit in semi-urban and rural markets • Strong asset quality due to fully collateralised lending model • Expansion into microfinance, housing finance, and digital lending • Beneficiary of higher gold prices supporting loan book growth With gold prices remaining strong and demand for secured retail credit intact, Muthoot Finance continues to have a structurally resilient business model, though near-term price action will depend on whether the stock can reclaim ₹3,500 resistance