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 Rs.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 Rs.314.65 halted last week. The stock made a low of Rs.282.7 on Thursday and has formed a base by trading in a sideways range between Rs.282 and Rs.291.
The sharp rise on Monday is signalling the beginning of a fresh leg of the upmove. Immediate resistance is at Rs.295.75 — the 21-day moving average.
A strong break above this hurdle can take the stock higher to Rs.300 and Rs.305. Immediate support is at Rs.293 and the level of Rs.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 Rs.291 for the target of Rs.300.
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