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We recommend a buy in Finolex Cables. From the weekly chart of Finolex Cables, it is clear that it was on a long-term downtrend from its life high of Rs 109 (touched in early January 2007) to its October trough of Rs 62. However, from Rs 62 levels, the stock has been on a medium-term uptrend. During this uptrend, the stock breached the 200-day moving average line and down trendline. On December 3, the stock gained more than 6 per cent, accompanied by heavy volumes. The medium-term uptrend is still in place and is supported by good volumes. The daily as well as weekly momentum indicators are featuring in the bullish region, resulting in a positive near-term outlook. The immediate support for the stock is at Rs 85 and the next is at Rs 75. The immediate resistance for the stock is at Rs 110 on the upside. Short-term investors can buy the stock while keeping their stop-loss at Rs 91. We expect the stock to move up further to Rs 110 levels in the short-term.

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