Nifty Financial Services sector is expected to do will in the near to medium term, Technical Analyst Nilesh Jain, who is Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking said. He also picked two stocks that are expected to bring significant gains for investors over a one-month period. 

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These two stocks are Muthoot Finance Limited and Manappuram Finance Limited. Know what works for these stocks! 

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Stocks To Buy – Muthoot Finance Limited shares – Muthoot Finance shares were trading at Rs 1557 on the NSE around 11:30 am, almost flat from the Monday closing price, though with some negative bias. This stock also hit a 52-week high on Tuesday attaining Rs 1569.85. Jain said that the stock is positioned well to see an upside from here. He expects a short term target price at Rs 1600. Over a one-month period, the stock is expected to test levels of Rs 1700, the technical analyst said.  

This stock has seen a symmetrical triangle pattern breakout. The 52-week low in this stock is Rs 1000 which the stock hit on 22 September 2020.  

Over the last 10 trading sessions, this stock has moved both ways, giving opportunities for both types of trades.  

Stocks To Buy – Manappuram Finance Limited shares - Manappuram Finance shares were trading at Rs 177.30 around this time, almost flat from the Monday closing price, though with some negative bias. This stock is trading near its 52-week highs of Rs 187.25 which it achived in July 2020. The 52-week low in this stock is Rs 139.10 which it hit in April 2021.  

Jain puts a target price of Rs 185 in this stock while a strong support zone at Rs 168. He put this as a stop loss for making investment calls. He has a 1-month view on this stock. This has been trading with positive bias over the last 7-8 trading sessions. 

Meanwhile, overall, Nifty Financial Services index was trading in the green on Tuesday. Out of the 20 stocks, 16 were in the green, 3 in the red while one remains unchanged around this time.