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How to trade Muthoot Finance stock as it tests 200-DMA support? Find out

Muthoot Finance stock has slipped nearly 9 per cent in the last one week after the gold loan lender reported its Q4 results on May 14. For the quarter ended March 2025, Muthoot Finance posted a 30 per cent rise year-on-year (YoY) in consolidated net profit at ₹1,477.70 crore as against ₹1,389.1 crore in Q4FY24. Consolidated revenue from operations increased by 35 per cent YoY to ₹5,621.7 crore from ₹4,163.8 crore. Further, Muthoot Finance reported its highest-ever consolidated loan Assets Under Management (AUM) at ₹1,22,181 crore, reflecting a 37 per cent Y-o-Y growth. The company had earlier declared a dividend of ₹26 per share for the financial year FY25. As per reports, the stock has been facing selling pressure off late after the Reserve Bank of India (RBI) with an aim to bring more transparency and control proposed new rules to streamline gold loan practices. The Central Banker has proposed a uniform Loan-to-Value (LTV) cap of 75 per cent to all gold loans. READ MORE Meanwhile, in a recent interaction with Business Standard, the Muthoot Finance's Managing Director George Alexander Muthoot said the proposed gold loan guidelines, if implemented in the current form, would increase compliance cost, especially for new entrants, since it will weigh on the average asset under management (AUM) per branch. Catch Latest Stock Market Updates Today LIVE Commenting on the future plans, George said the company's plans to slow its microfinance business amid stress in the segment and shift focus to gold loans where demand remains strong. READ MORE Amid the recent fall in share price, Muthoot Finance stock is once again seen testing its 200-Day Moving Average - a key support the stock has broadly held since May 2023. Can the stock once again succeed in respecting the 200-Day Moving Average (200-DMA) support or will it break below the same? As such, here's a technical outlook on Muthoot Finance for the likely upside potential or downside risk. Muthoot Finance Current Price: ₹2,065 Upside Potential: 5.6% Downside Risk: 9% Support: ₹2,023; ₹1,979 Resistance: ₹2,145; ₹2,163 On Wednesday thus far, Muthoot Finance stock was seen trading with a gain of 1.6 per cent at ₹2,065 levels, after testing the 200-DMA support at ₹2,023. Technically, the key momentum oscillators on the daily and weekly chart are hinting towards further pain for the stock. As such, break and sustained trade below the 200-DMA, can drag the stock towards ₹1,880 levels, with interim support anticipated around ₹1,979 levels. On the other hand, in case, the stock manages to hold above the 200-DMA, it can attempt a pullback towards its short-term - the 50-DMA at ₹2,180 levels, with interim resistance likely around ₹2,145 and ₹2,163 levels. The stock will need to break and trade consistently above ₹2,180 for the sentiment to turn favourable, suggests technical charts.