Bullish - Breakout observed from a descending channel

Entry Zone: We recommend accumulating FSL in the zone of ₹375 - ₹385.

Target 1 (T1): ₹405
Target 2 (T2): ₹420
Target 3 (T3): ₹450 (If momentum sustains above T2)

Stop Loss (SL): ₹360 (Closing basis)

Rationale:

Channel Breakout: The stock has successfully broken out of a prominent descending channel, indicating a potential shift in momentum from bearish to bullish. This breakout is supported by decent volumes on the breakout candle.

RSI Confirmation: The Relative Strength Index (RSI) has shown a strong move above the 50-mark and is trending upwards, suggesting increasing buying interest and underlying strength.

Support from Previous Levels: The breakout retests appear to hold the previous resistance now acting as support, which is a classic bullish reversal pattern.

Risk-Reward: The current setup offers a favorable risk-to-reward ratio for short-term traders.
Key Risk: A close below ₹360 would negate the current bullish view and could lead to further downside. Traders should adhere strictly to the stop-loss.


Disclaimer: This report is for informational purposes only and does not constitute financial advice. Investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions. Equity investments are subject to market risks.