Polycab India stock jumps 4%; analysts see it at Rs 3,200

Shares of Polycab India rose sharply on Tuesday to hit a one-year high level of Rs 2,990.90. The stock eventually settled 4.45 per cent higher at Rs 2,944.05 on BSE today. It moved 6.11 per cent higher to hit an intraday high -- also its 52-week high -- of Rs 2,990.90. Technical charts hinted at a secular uptrend with support seen at Rs 2,800 levels.

A total of 57,000 shares changed hands today, amounting to a turnover of Rs 16.77 crore. At this price, the market capitalisation (m-cap) of the company stood at Rs 44,067.03 crore.

At today's closing level of Rs 2,944.05, the stock was up 43.96 per cent from its one-year low of Rs 2,045, hit on June 20 this year.

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The stock has climbed 8.33 per cent in the last five trading sessions. On a year-to-date (YTD) basis, it has gained 19.59 per cent.

Analysts largely felt that the Polycab stock could continue its upward move, suggesting a long-term target of Rs 3,200. However, one analyst pitched the counter as 'overbought' and proposed booking profits at current levels.

Osho Krishan, Sr. Analyst- Technical & Derivative Research, Angel One, said, "Polycab is in a secular uptrend and is hovering well above all its major exponential moving averages at lifetime-high levels. On the technical front, the support has shifted upwards near the Rs 2,800-odd zone, followed by a strong demand zone of Rs 2,700-2,680. On the flip side, looking at the recent price action, the stock has the potential to continue its northward journey in uncharted territory. As far as levels are concerned, Rs 3,000-3,200 could be seen as the next pitstop for the counter in a comparable period."

A R Ramachandran from Tips2trades, said, "Polycab India could just breach Rs 3,000 levels soon. However, the stock is very overbought and investors should be booking profits at current levels. Rs 2,500-2,510 levels can be used to buy for long-term targets of Rs 3,250-3,310."

Manoj Dalmia, Founder and Director of Proficient Equities, said, "Polycab has given a breakout recently after a good consolidation. Investors can take entry for a long-term target of Rs 4,050 with a stop loss of around Rs 2,692.

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Meanwhile, Indian equity benchmarks surged today, led by gains in state-owned lenders and technology stocks.