Buy SKS Microfinance with a target at Rs 641: Siddharth Chatterjee

Siddharth Chatterjee of Trustline Securities has recommended a buy on SKS Microfinance for a target of Rs 641 in trade on Monday. The analyst has advised traders to keep a stop loss at Rs 626. The stock has returned 14.99 per cent in the past one month against a 13 per cent rise in Manappuram Finance and 6 per cent rise in Muthoot Finance. The stock is trading above its important moving averages. The stock is in the overbought territory at 76 — which is above 70 level — as suggested by 14-day relative strength index (RSI).