The outlook for the stock of Finolex Cables is bullish. The stock skyrocketed 9.15 per cent on Monday. This surge has taken the stock well above a key resistance at ₹520. It has also marked the end of a flag pattern that has been in place since July this year. This indicates that the uptrend that has been in place since March last year is still intact. The rise on Monday marks the beginning of a fresh leg of upmove within the broader uptrend.
The stock can now have potential to target ₹650 on the upside. Traders can go long at current levels and also accumulate longs at ₹530 and ₹515. The level of ₹500 is a strong support which is likely to hold and limit the downside. Dips to this support is likely to see fresh buyers coming into the market. So, keep the stop-loss at ₹490. Trail the stop-loss up to ₹565 as soon as the stock moves up to ₹595. Move the stop-loss further up to ₹605 as soon as the stock touches ₹635. Book profits at ₹645.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)