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Investors with a short-term perspective can consider buying the shares of Finolex Industries. The stock surged over 3 per cent on Monday, breaking above a key resistance at ₹291, which has been providing resistance to the stock over the last three sessions.
The near-term downtrend that had begun from the November 10 high of ₹314.65 halted last week. The stock made a low of ₹282.7 on Thursday and has formed a base by trading in a sideways range between ₹282 and ₹291.
The sharp rise on Monday is signalling the beginning of a fresh leg of the upmove. Immediate resistance is at ₹295.75 — the 21-day moving average. A strong break above this hurdle can take the stock higher to ₹300 and ₹305. Immediate support is at ₹293 and the level of ₹291 is expected to act as a good resistance turned support. Traders with a short-term perspective can go long. Stop-loss can be kept at ₹291 for the target of ₹300.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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