By Subash Gangadharan 

On the daily chart, we observe that Nifty has recently bounced back from a low of 21821 and has been consistently moving higher in the last few sessions. The nifty index continues to hold above a trend line support connecting swing lows of the last three months.

Nifty has also taken out the previous swing high of 22368 and is comfortably trading above the 20- and 50-day SMA. The 14-day RSI too is in rising mode and not overbought.

With the Nifty now breaking out of the 22400-22600 range, the index could move higher towards the current life highs of 22795 in the coming sessions. Crucial supports are now at 22483-22404.

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Finolex Cables 

Finolex Cables has bounced back strongly from the 831 levels. These levels coincide with the previous intermediate lows of the stock. The stock has gradually moved higher over the last several weeks and this week, the stock has broken out of its recent trading range, indicating it is set to move higher. Momentum readings like the 14-day RSI are climbing higher and not overbought, which indicates further upside potential. Buy Finolex Cables at Rs 1,160 with a target price of Rs 1,300. However, the stop-loss needs to be placed at Rs 1,060. 

Olectra 

Stock price has bounced back from a recent low of 1560 which coincides with a previous intermediate low, indicating a double bottom pattern. The stock has gradually moved higher and this week it has broken out of its recent trading range on the back of above-average volumes.  

The recent upmove has also led to the stock moving above the 20- and 50-day SMA. And momentum readings like the 14-day RSI are climbing higher and not overbought, which indicates further upside potential. Recommend buying Olectra at Rs 1,800 with a target price of Rs 1,950 and the stop-loss placed at Rs 1,680. 

(Disclaimer: Subash Gangadharan is the Senior Technical and Derivative Research Analyst. Views, recommendations, opinions expressed are personal and do not reflect the official position or policy of Financial Express Online. Readers are advised to consult qualified financial advisors before making any investment decisions. Reproducing this content without permission is prohibited.)