One can go long on Manappuram Finance and Muthoot Finance, as both the stocks have been outperforming and 30-35 %rally is expected from current levels, says Shubham Agarwal of Motilal Oswal Securities.
Agarwal told CNBC-TV18, "Manappuram General Finance and Muthoot Finance are lucrative, but after looking at the movement that has already taken place today. One should wait for a pullback or a consolidation. So either ways once the stock goes sideways for sometime then we will have better clarity but if someone is really willing to take a risk of 20-25 percent as a stop loss which should be the minimum level of stop loss for both the scrips."
He further added, "One can go long on both the scrips with a target much higher from the current levels because we have seen that both the stocks have been outperforming. The risk reward may not be that high but we can expect a 30-35 percent rise from the current levels."