Gold prices have risen by 11% in international markets, reaching a record USD $2,900 per ounce, due to uncertainty about the impact of US President Donald Trump's tariff threats. Experts believe that Trump's tariff threats have fueled the current rally in gold prices, causing investors to shift their focus away from equities and toward safer havens. Gold prices in India were quoted on the Multi Commodity Exchange (MCX) at around Rs 85,000 per 10 grams.
Meanwhile, on the stock exchanges, shares of gold financers or gold loan lending companies have shown mixed results so far in 2025. Manappuram Finance and Muthoot Finance's shares rose nearly 9% and 3%, respectively, while IIFL Finance's fell nearly 14%.
In comparison, the National Stock Exchange (NSE) benchmark, the Nifty 50 index, has fallen 1.1%, while the broader Nifty 500 index has declined 4.5%.
On Tuesday, shares of these three gold loan lenders were trading with losses of up to 3% in a weak market. The Nifty 50 index was down 0.5% at 23,270 levels. In light of this, what should your trading strategy be for gold financers' shares? This is a trading guide based on technical charts.
Muthoot Finance
Current price: Rs 2,180
Downside Risk: 11.5%
Support: Rs 2,193 and Rs 2,030
Resistance: Rs. 2,270
Muthoot Finance stock has been trading with a positive bias since its breakout in mid-November 2024. The stock rallied from Rs 1,776 to Rs 2,309 earlier this month. Following that, the stock is seen testing support near its 20-DMA (Daily Moving Average) of Rs 2,193 levels.
Key momentum oscillators on the daily chart are indicating a possible negative crossover, so the stock may experience some downward pressure in the near term. The chart suggests that the near-term bias will remain tepid as long as the stock trades below Rs 2,270. On the downside, the stock may test support at Rs 2,030; a break and trade below that level could trigger a slide to Rs 1,930.
Manappuram Finance
Current price: Rs 200.
Downside Risk: 7%.
Support: Rs 197, Rs 194.
Resistance: Rs 210.
Manappuram Finance's stock price has increased by more than 53% in the last four months, from Rs 137 to a recent high of Rs 210. The stock is currently seeking support near its 20-day moving average of Rs 197, with key momentum oscillators indicating exhaustion. Consequently, the stock may consolidate in the near term. As a result, Manappuram Finance falls to Rs 186, with some interim support at Rs194.IIFL
Current price: Rs 345
Downside Risk: 16.5%
Support: Rs 334, Rs 323, and Rs 306
Resistance: Rs 393
IIFL has been trading with a negative bias across timeframes. The stock appears to be on track to test long-term support at Rs 288; interim support is seen at Rs 334, Rs 323 and Rs 306, respectively. The stock's near-term bias will most likely remain negative as long as it trades below Rs 393.
