360 One WAM: Trading Strategies In IIFL Group Stocks Post Hindenburg Claims

4 min read Last Updated : Aug 12 2024 | 12:58 PM IST

Shares of IIFL Group of companies were in focus in trades on Monday, August 12, after Hindenburg Research in its report named one of IIFL’s group company namely – 360 One WAM, in its scathing attack on Sebi chairperson Madhabi Puri Buch.

As per the Hindenburg report, Madhabi Buch and her husband Dhaval Buch, first appear to have opened their account with IPE Plus Fund 1 on June 5, 2015 in Singapore, per whistleblower documents. A declaration of funds, signed by a principal at IIFL states that the source of the investment as ‘salary’ and the couple’s net worth estimated at $10 million.

360 One WAM, an asset and wealth management firm formerly known as IIFL Wealth Management, has played down the allegations made by Hindenburg Research against the Sebi chief.

“The fund was managed as a discretionary fund by the investment manager. No investor had any involvement in the fund’s operations or investment decisions. Madhabi Buch and Dhaval Buch’s holdings in the fund were less than 1.5 per cent of the total inflow into the fund,” disclosed 360 One in its statement.

“At its peak, the fund’s assets under management (AUM) reached approximately $48 million, with over 90 per cent of the fund consistently invested in bonds,” said the wealth management firm.

Meanwhile on the bourses today, shares of 360 One WAM, IIFL Securities and IIFL Finance declined up to 5 per cent in intra-day deals; but soon recouped most of the day’s losses.

Here’s how these stocks are placed on the charts:

360 One WAM

Current Price: Rs 1,037

Bias: Range-bound likely

Support: Rs 1,025; Rs 930

Resistance: Rs 1,115; Rs 1,150

The stock price of 360 One WAM is seen treading along its 20-DMA (Daily Moving Average) for the last six trading sessions. The 20-DMA stands at Rs 1,025, with next key support level placed at Rs 930 – its 50-DMA. On the weekly scale, the stock is seen facing resistance around the 200-WMA (Weekly Moving Average) at Rs 1,150, with interim resistance seen at Rs 1,115.

Thus, implying that the stock may consolidate in the broad range of Rs 930 – Rs 1,150, before making its next decisive move. CLICK HERE FOR THE CHART

IIFL Finance

Current Price: Rs 416

Upside Potential: 23.8%

Support: Rs 411; Rs 385

Resistance: Rs 450 and Rs 465

IIFL Finance has been trading with a negative bias post the steep fall in March 2024 due to RBI’s ban on fresh gold loan disbursals by the NBFC.

The stock, however, had recovered partly from a low of RS 316 and went on test its 200-DMA at Rs 535 levels in early July. The stock, however, is seen drifting lower. The stock has near support at Rs 411 and Rs 385 – wherein stands the 200-wMA.

As long as these support zones holds, the stock can attempt to pullback to higher levels once again. On the upside, the stock may attempt a re-test of its 200-DMA at Rs 515 levels, with interim resistance seen around its 20-DMA at Rs 450 and the 50-DMA at Rs 465. CLICK HERE FOR THE CHART

IIFL Securities

Current Price: Rs 209

Upside Potential: 29.7%

Support: Rs 184; Rs 165

Resistance: Rs 240 and Rs 255

IIFL Securities is seen trading with a bullish bias on the weekly scale; The stock is not only trading firmly above its key moving averages, but has also been making higher highs and higher lows since the breakout above it 100-WMA in August 2023.

As per the current chart pattern, the stock seems to be in the process of seeking support around the 20-WMA, which stands at Rs 184; below which the stock is expected to find considerable support around Rs 165 levels. On the upside, the stock can potentially rally to Rs 270 levels; with interim resistance seen at Rs 240 and Rs 255 levels. CLICK HERE FOR THE CHART

First Published: Aug 12 2024 | 12:54 PM IST