The stock price of Poonawalla Fincorp looks likely to be gearing up for a fresh rally. The stock has been stuck in a sideways range of ₹282-₹310 for over a month now. The price action suggests that Poonawalla Fincorp is likely to break this range above ₹310. The 200-Day Moving Average (DMA) at ₹284 has been limiting the downside very .
A break above ₹310 immediately or eventually after some time can take the stock up to ₹330-₹340 in the coming weeks. Traders can go long and accumulate on dips at ₹290. Keep the stop-loss at ₹275. Trail the stop-loss up to ₹305 as soon as the stock moves up to ₹315. Move the stop-loss further up to ₹320 when the stock touches ₹330 on the upside. Book profits at ₹335.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)