Polycab Stock Outlook: Chart Check: Polycab decreased by about 10% from high; To buy

Polycab India grew by more than 60 per cent last year compared to the 7 per cent growth seen in the Nifty 50 over the same period. However, the scrip has gone through some consolidation since hitting a 52-week high last month.

The stock reached a 52-week high of Rs 2,820 on April 22, 2022, with a market capitalization of around Rs 38,000 crore on the BSE. It remains resilient, making it a good buy in deep stocks, experts advise.

Polycab fell nearly 10 percent from a 52-week high recorded last month. It had taken support at around Rs 2,360 in early May before bouncing back.

At the same time, the Nifty50 has risen more than 5 percent in one week, compared to a fall of about 4 percent.

The stock has been able to fight volatility which suggests that there is a lot of demand for the stock at lower levels. On Friday, May 13, 2022, it rose 4.6 percent to close at Rs 2,539.

Experts see continued outperformance that makes Deep Stock better to buy at the 2,320-2,340 level for a target of Rs 2,770-3,000 in the next 6-month frame.

On the long-term chart, Polycab continues with strong highs and highs and lows while maintaining its strong uptrend.

The stock showed relative outperformance as it was not accurate despite market weakness. Broadly, the stock has been trading between Rs 2,150-2,750 for the last 8-9 months.

“Currently the stock is down only 10% from the height of life whereas the Nifty is down 15%. The stock is bouncing back after gaining support at the 20-week SMA (2471) this week and has created a bullish engulfing pattern on the weekly chart indicating a bullish reversal, ”said Malay Thakkar, Technical Research Associate, GEPL Capital.

The RSI index plotted on a weekly scale is getting higher after creating a bullish hinge at the 45 mark. The MACD is below the signal and center line, which is a strong bearish indicator.

“Going forward, we expect the stock to continue its performance and move towards the Rs 2,770 and Rs 3,000 levels. On the downside, Rs 2,320-2,340 will serve as a support for the zone counter, ”Thackeray suggested.

(Disclaimer: The recommendations, suggestions, opinions and opinions offered by the experts are their own. These do not represent the views of the Economic Times)