Poonawalla Fincorp May Retest Highs; Supreme Industries Near Critical Breakout Zone: SEBI Analyst

The analyst flagged bullish momentum in both stocks, but advised wait-and-watch on Supreme till volume confirmation.

SEBI-registered analyst Kavita Agrawal has flagged two stocks – Poonawala Fincorp and Supreme Industries – for potential upside ahead. 

Let’s take a look at the rationale behind her recommendations.

Poonawala Fincorp

Poonawal Fincorp stock has crossed the ₹62 level on the 75-minute chart, which indicates strong bullish momentum. Agrawal noted that on its daily and weekly charts, volumes were picking up and its Relative Strength Index (RSI) was in the positive range, confirming strength in momentum. She added that its technical structure looked trend-positive with higher highs forming. 

She advised traders to wait for a pullback and for the stock to retest the 20-day Exponential Moving Average (EMA), which is considered as a good entry zone during a strong uptrend. For a longer timeframe, Agrawal identified support at ₹400. 

She concluded that the stock was forming a higher high, but had not hit an all-time high yet. However, looking at the trajectory, it could potentially test all-time resistance in the next 6 months if momentum continues.

Supreme Industries

On the 75-minute chart, Supreme Industries had turned positively aligned, but the volume pickup was not convincing yet. While volumes show strength, Agrawal said that confirmation on its daily and weekly charts was necessary before suggesting buy trades. 

On the weekly charts, the stock was still officially in the negative zone, though the direction is turning upward. 

Agrawal identified ₹5,184 as a critical level. A confirmed higher high above this zone could trigger a more reliable entry. And a break above this could set up a medium-term swing trade with potential to ride towards a bigger trendline target. She pegged resistance at ₹8,093, with support at ₹4,116.

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