Todays Pick

Fineotex Chemical (₹113.3): Buy

Yoganand D BL Research Bureau | Updated on August 04, 2021

The stock of Fineotex Chemical (FCL) surpassed a near-term resistance at ₹109 by gaining 5.8 per cent accompanied by good volume on Wednesday. It was testing this resistance over last two weeks. The recent breakthrough of the barrier has strengthened the uptrend and provides investors with a short-term perspective an opportunity to buy the stock at current levels.

The stock is in an uptrend across all time frames. Following a correction, the stock took support at around ₹56.6 in late March this year and resumed the uptrend. Since then, the stock has been in a medium-term uptrend. Backing the uptrend, there has been an increase in volume since early July.

The daily as well as the weekly price rate of change indicators feature in the positive terrain implying buying interest. The daily and the weekly relative strength index hover in the bullish zone, cushioning the uptrend.

The short-term forecast is bullish for the stock. It can continue to trend upwards and hit the price targets of ₹118 and ₹121 in the ensuing trading sessions. Traders can buy the stock with a stop-loss at ₹111.

(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)

Published on August 05, 2021

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