20% Muhurat Trading Rally! What Triggered Finolex Cables?

Finolex Cables Ltd. stole the spotlight during Muhurat Trading, surging 20% to hit the upper circuit at ₹1,309.20. The spectacular move comes after the company reported an impressive Q2 FY27 performance, triggering strong buying interest in the stock. What Triggered the Rally? The company's September-quarter results, announced on November 7, were significantly strong: Revenue from Operations: ₹2,269.33 crore, up 64.9% YoY. Net Profit: ₹272.92 crore, up 67.8% YoY. Profit Before Tax: ₹356.65 crore, up 73% YoY. Operating Profit: ₹311.22 crore, up 114.5% YoY. The strong earnings growth, accompanied by improving operating performance, appears to be the major catalyst behind the buying momentum. Technical View: The stock has staged a strong recovery and is now trading above its 20 EMA (₹1,225), 50 EMA (₹1,260), 100 SMA (₹1,215) and 200 SMA (₹1,061). RSI at 55.11 indicates improving momentum, while ADX at 35.95 suggests a strong trend. MACD is also showing signs of a bullish recovery. Important Levels to Watch: Immediate Support: ₹1,260–1,225 Resistance Zone: ₹1,400–1,480 My View: Strong quarterly earnings have provided a fundamental trigger, while technical indicators are also turning favourable. However, after a 20% upper-circuit rally, chasing the stock at elevated levels may involve significant risk. Sustained strength above ₹1,310 and healthy consolidation will be important for the next move. Is this the beginning of a fresh bullish trend in Finolex Cables? Disclaimer: This article is for educational purposes only and should not be considered investment advice. Disclosure: The analyst and his family do not have any position in the stock. FINCABLES