Polycab India Breaks Continuation Pattern and Surges: Impressive Resilience Displayed

Polycab India Limited, a prominent player in the cables and electricals industry, demonstrates remarkable resilience with a notable surge of over 2.5% in recent trading activity. This surge marks a breakthrough beyond the continuation pattern’s trendline.

Polycab India Ltd, a Mumbai-based company founded on January 10, 1996, primarily engages in the manufacturing and sale of electric wires and cables. The company operates across three segments: Wire and Cables, Fast Moving Electrical Goods, and International Business. The Wire and Cables segment encompasses the production and sale of electric wires and cables. Meanwhile, the Fast Moving Electrical Goods (FMEG) segment caters to the consumer durable business, including electric wiring accessories and appliances.

Beyond its core products, Polycab has expanded its portfolio to encompass an array of consumer electrical offerings such as Fans, Switches, Switchgear, LED lights, Luminaries, Solar Inverters, and Pumps.

A comprehensive analysis of Polycab’s stock performance from July 20, 2023 (Rs 4924) to August 17, 2023 (Rs 4908.85) uncovers a compelling Continuation Price Pattern. This pattern hints at the potential for a substantial price movement. A recent trading session stands out, witnessing an impressive rally exceeding 2.5%, accompanied by above-average trading volumes surpassing 7 lakh shares.

Currently, Polycab India Ltd confidently trades above the breakout trendline at Rs 4900, reaching Rs 4992. Discerning long-term investors are urged to seize this breakout opportunity. Further validation of the continuation technical price pattern hinges on daily closure above the breakout level. The projected target for this pattern revolves around Rs 5635, implying a significant surge of over 15% from the breakout point.

Adding to the optimistic outlook, the 14-week relative strength index (RSI) positions itself comfortably within the bullish zone, hovering around 73. This underlines the company’s favourable stance. Supported by robust momentum indicated by short-term key moving averages, both momentum traders and long-term investors have compelling reasons to consider Polycab India Ltd. as an appealing contender for strategic inclusion in their forthcoming trading strategies.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.