The short-term outlook for the stock of IIFL Finance is bullish. The stock has been broadly trading in a sideways range for a prolonged period of time. Within this range, it has strong support in the ₹290-₹285 zone over the last few weeks. Indeed the stock has formed a good base and is now attempting to bounce. This leaves the broader sideways range intact. The ₹290-₹285 region will continue to remain as a good support zone. Dips to this will find fresh buyers coming into the market. Immediate resistance is at ₹330. But the chances are high for the stock to break above this hurdle in the coming days will boost the bullish momentum.
It will rise to ₹375-₹380. A break above ₹380 can extend rise to ₹400. Traders with a short-term perspective can go long now. Accumulate longs on dips at ₹305. Keep the stop-loss at ₹283. Trail the stop-loss up to ₹328 as soon as the stock moves up to ₹345. Move the stop-loss further up to ₹353, the stock touches ₹363. Book profits at ₹370.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)