POLYCAB - Consolidation -Breakout -Daily

The chart for Polycab India Ltd. (POLYCAB) from October 2, 2024, reflects a strong breakout above resistance levels with significant momentum. Here's a breakdown of key observations:

Resistance Breakout: The stock has decisively broken above the resistance level around ₹6,905 with a strong bullish candle, closing at ₹7,326.55, marking a 5.34% gain for the day. The stock was previously consolidating within a range, but the breakout is accompanied by increased volume, which strengthens the move.

Potential Target: Based on the breakout, the stock could test higher levels, potentially reaching around ₹7,672 (upper green resistance zone), indicated by previous high zones or Fibonacci extensions.

Volume and Momentum: The volume bars indicate strong buying interest, confirming the breakout. The RSI (Relative Strength Index) shown at the bottom also supports bullish momentum as it is nearing the overbought zone, signaling strong upward momentum but also a potential caution for profit booking in the near term.

Support Levels: The immediate support is around ₹6,902. If the stock faces a pullback, this level might act as a key support zone. Below that, ₹6,146 would be the next significant support level.

The chart shows strong bullish sentiment, and the momentum might push the stock higher unless profit-booking or external market factors interfere.