The short-term outlook for the stock of Finolex Cables is bullish. The stock surged 5.8 per cent on Tuesday and closed above the key resistance at ₹590. The level of ₹590 will now act as a good resistance-turned-support and limit the downside. Finolex Cables has the potential to rally towards ₹650-₹660 in the next two-three weeks.
Traders can go long now and also accumulate at ₹590. Keep the stop-loss at ₹565.
Trail the stop-loss up to ₹605 as soon as the stock moves up to ₹620. Move the stop-loss further up to ₹635 when the stock touches ₹645 on the upside. Exit the long positions at ₹655. The bullish outlook will get negated if the stock falls below ₹590. In that case, a fall to ₹530-₹520 is possible.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)