The outlook for the stock of Can Fin Homes is bullish. The stock surged 6.86 per cent on Wednesday and rose decisively above the key ₹640-₹650 resistance zone. This has reversed the downtrend that was in place since October last year. The level of ₹650 will now act as good support. Intermediate dips to this support are likely to see fresh buyers coming into the market.
A strong rise to ₹720-₹730 can be seen here in the coming days. Traders with a short-term perspective can go long at current levels.
Accumulate longs on dips at ₹655. Keep the stop-loss at ₹635. Trail the stop-loss up to ₹675 as soon as the stock moves up to ₹688. Move the stop-loss further up to ₹689 as soon as the stock rises to ₹697. Book profits at ₹718.
The bullish outlook will get negated if the stock falls decisively below ₹650. In such a scenario, a fall to ₹620 and even lower levels is possible. But the breakout above ₹650 seen on Wednesday looks strong. As such, the stock falling below ₹650 is less probable and is more likely to sustain above it.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)