Short to medium-term traders can look to buy the stock for a target of Rs 5650 in the next 1-2 months, they say.
The stock rose from Rs 3614 as of June 28, 2023, to Rs 5286 recorded on 28 September 2023 which translates into an upside of over 46% in the last 3 months.
The momentum helped the stock to hit a fresh record high of Rs 5398 on 28 September 2023. However, the stock witnessed some profit-taking after hitting a record high.
The stock has been making higher highs and higher lows for the past 6 months on the monthly charts. On the daily scale it has given a fresh consolidation breakout after fifteen sessions.
In terms of price action, the stock is trading above most of the short- and long-term moving averages such as 5,10,30,50,100 and 200-DMA which is a positive sign for the bulls.
The daily Relative Strength Index (RSI) is at 58.7. RSI below 30 is oversold and above 70 is considered overbought, Trendlyne data showed.
“Polycab India is in an overall uptrend on a monthly scale and forming higher highs – higher lows from the past six months. On the daily scale, it has given a fresh consolidation breakout after fifteen sessions and given the highest daily close,” Arpit Beriwal, Analyst, Equity Derivatives & Technicals, MOFSL, said.
“It has also formed a strong bullish candle and is holding well above its 20DEMA. The Relative Strength Index (RSI) is also moving higher which suggests momentum to continue in coming sessions,” he said.
“We have good outperformance in midcap space and thus recommending to buy the stock with keeping stop loss below 5200 for an upside move towards 5650 levels,” recommended Beriwal.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
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