Mumbai: Broader markets have strengthened in the last few days due to positive global and domestic cues. Due to this, many cheap stocks are witnessing strong buying interest at lower levels and are currently available at attractive prices. One such stock is Finolex Industries, whose shares have gained more than six per cent today. Fresh buying interest is visible in this. There has been a sharp decline in this stock in the last one year and during this period its price has fallen by about 50 per cent. However, it has seen strong institutional buying interest at lower levels in recent times. Because of this, it has gained more than 20 per cent.
Technically, the stock has surpassed its prior swing low with decent volume. Along with this, it has crossed the 200 day daily moving average and is currently trading above all important moving averages. Also, it has registered a breakout from its complex double-bottom pattern. After a long time its technical parameters are showing bullish strength. Its 14-day period daily RSI (68.86) is showing strong strength while the MACD continues to move up. Its OBV is continuously increasing and active buying interest is visible in it. The stock seems to have passed the bad phase and is now ready to soar higher. The company’s stock is currently trading at Rs 160 on the NSE. This is a good risk-reward opportunity for momentum traders and one to watch out for. This article is powered by Dalal Street Investment Journal, India’s No. 1 Investment Magazine. Click here to get regular updates about Winning Stocks and Recommendations.
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