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The stock of Finolex Cables has been on a strong uptrend this year. It has more than doubled from January low of ₹201 and is on a strong footing. It rose 2.2 per cent last Friday and was up 3.6 per cent for the week. Prior to this rise the stock was consolidating sideways between ₹380 and ₹405 for more than two weeks.
Friday’s rise has broken this range on the upside thereby signalling the resumption of the uptrend. Immediate support is between ₹405 and ₹400. The 21-DMA at ₹390 will be an important short-term support. This moving average has been providing strong support and limiting downside in the stock since January. A rise to ₹430 or even ₹450 looks likely in the coming days.
Traders with a short-term perspective can go long. Stop-loss can be placed at ₹395 for a target of ₹445. Accumulate longs on dips near ₹405. Revise the stop-loss higher to ₹420 as soon as the stock moves to ₹430.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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