Pushed by the regulatory action by the Reserve Bank of India (RBI) against 4 NBFc including Asirvad Micro Finance, the shares of its parent company, Manappuram Finance, plummeted by 21% in a week, driven by investor concerns over the company's future.The regulator directed the NBFC to cease and desist from sanction and disbursal of loans, effective October 21.Today is the 9th consecutive session where the stock is trading in red.“Asirvad Micro Finance accounts for 27% of the consolidated assets under management (AUM) for Manappuram Finance, which is sizeable, hence a thorough review, risk management, and regulatory & compliance overhaul would have to be undertaken, to restore investor confidence,” said Aamar Deo Singh, Sr. Vice President of Research at Angel One.Singh also advised the investors to stay cautious and watch the actions taken by the company’s management to address the concerns raised as that will only assuage investor fears.Post the RBI action, the stock also attracted downgrades from various brokerage firms with the target prices going as low as Rs 167, a level which was broken on the next day of the central bank’s orders.Also read: Paytm Q2 Results: Fintech posts Rs 928 cr PAT on one-time gain; revenue slides 34% YoYOn charts, the stock is placed below all its significant short, medium and long term exponential moving averages (EMAs) and is in an oversold zone on the RSI, oscillating near the 14 mark.Technically, the stock is currently trading in a short-term bearish trend, with the monthly chart reflecting a double top pattern.“This pattern (double-top), along with a strong bearish candle, has resulted in a 37% correction from its all-time high. The stock is now moving in a sideways to bearish trend, suggesting high volatility within a defined range,” said Mandar Bhojane, Equity Research Analyst at Choice Broking.Bhojane also added that the immediate support is seen near Rs 140 level, where a rising trendline also provides additional support and if a bullish reversal occurs around the same, it could be viewed as a buy-on-dips opportunity. “However, if the stock breaks below this level, further downside correction toward Rs 125 is possible. On the resistance front, Rs 160 and Rs 180 are the next key levels that traders should watch, Bhojane said.With that, it is recommended that the investors currently holding positions should maintain a stop loss at Rs 140 and look for signs of a bullish reversal at key support levels before considering any further action.The shares of Manappuram Finance were trading 2.14% lower at Rs 143.75 on BSE around 11:30 am today.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)