The stock of Finolex Industries is in a strong uptrend. It recorded a new all-time high of ₹221.3 and has closed 1 per cent up on Tuesday. Traders can go long in this stock as it is expected to extend its rally in the coming days. The stock was consolidating sideways between ₹208 and ₹218 since April 17.
Immediate supports for the stock are at ₹217 and ₹214. While the stock trades above these levels, a rally to test the next resistance at ₹229 is likely. Traders with a short-term perspective can go long with a stop-loss at ₹216 for the target of ₹227. The 21-day moving average currently at ₹200 is a key support to watch in the short-term. Initial sign of a short-term reversal will emerge only if the stock falls below this level.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)