Finolex Industries is the largest PVC-U pipe manufacturer in India. Finolex has managed to break past long term stiff resistances around 125 areas and managed few weekly close above it. Such breakouts from long term patterns has strong potential for the stock price to be rerated. However in short to medium term the stock has had a vertical rise from 60 to 140 areas and is overbought. Some consolidation is likely and would be healthy if it happens. Throwback to 120(+-5) areas would be opportunity for traders to accumulate this stock with medium to long term horizon (3- 12 Months) Action ~ Accumulate Finolex Industries (CMP 136.25) gradually above 115 with stop below 98 closing basis. Targets of 200+ looks technically possible in long term.
Posted on: Mon, 10 Jun 2013 07:27:26 +0000
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