Key Events This Week
2 Feb: MarketsMOJO upgrades Finolex Cables to Hold amid mixed technical and financial signals
3 Feb: Technical momentum shifts with mixed weekly and monthly indicators
6 Feb: Stock surges 3.65% to close at ₹772.55, marking the week’s high
2 February: Upgrade to Hold Sparks Initial Gains
On 2 February, Finolex Cables was upgraded by MarketsMOJO from a Sell to a Hold rating, reflecting a nuanced improvement in its technical outlook and valuation despite flat recent financial results. The stock opened at ₹721.55 and closed at ₹723.25, gaining 0.24% on the day. This upgrade was underpinned by stable fundamentals, including a low debt-to-equity ratio of 0.0 and a respectable return on equity of 11.6%, alongside an attractive price-to-book ratio of 1.9. The technical indicators showed a shift from bearish to mildly bearish, with weekly MACD turning mildly bullish, signalling tentative stabilisation in price momentum. Institutional investors’ 25.19% stake further lent support to the stock’s outlook amid broader market volatility.
3 February: Mixed Technical Signals Amid Market Volatility
On 3 February, Finolex Cables advanced further to close at ₹740.50, a 2.39% gain, outperforming the Sensex’s 2.63% rise. However, technical momentum presented a complex picture. While weekly MACD and KST indicators remained mildly bullish, monthly MACD and KST turned bearish, indicating longer-term caution. Daily moving averages stayed bearish, suggesting short-term selling pressure persisted. The Relative Strength Index (RSI) remained neutral, and Bollinger Bands indicated mild bearish volatility. Volume declined to 24,398 shares, reflecting subdued trading activity. This divergence between short- and long-term technical signals suggested that while the stock was gaining ground, investors should remain cautious amid sectoral and macroeconomic uncertainties.
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4 and 5 February: Consolidation with Modest Gains
On 4 February, the stock continued its gradual ascent, closing at ₹744.75, up 0.57% on relatively lower volume of 11,929 shares. The Sensex also advanced modestly by 0.37%. The technical backdrop remained mixed, with weekly indicators mildly bullish but daily moving averages still bearish. On 5 February, Finolex Cables edged up by 0.08% to ₹745.35 on thin volume of 5,189 shares, while the Sensex declined 0.53%. This consolidation phase reflected investor caution amid uncertain momentum, with no significant catalyst driving volume or price action.
6 February: Strong Finish with 3.65% Surge
The week culminated in a strong rally on 6 February, with Finolex Cables surging 3.65% to close at ₹772.55, the highest price of the week. This gain outpaced the Sensex’s modest 0.10% rise. Volume increased to 11,413 shares, signalling renewed buying interest. The technical momentum appeared to strengthen, supported by the mildly bullish weekly MACD and KST indicators, although monthly indicators remained cautious. This final-day surge helped the stock outperform the benchmark by a wide margin over the week, underscoring a potential shift in investor sentiment.
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Daily Price Performance vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-02 | Rs.723.25 | +0.24% | 35,814.09 | -1.03% |
| 2026-02-03 | Rs.740.50 | +2.39% | 36,755.96 | +2.63% |
| 2026-02-04 | Rs.744.75 | +0.57% | 36,890.21 | +0.37% |
| 2026-02-05 | Rs.745.35 | +0.08% | 36,695.11 | -0.53% |
| 2026-02-06 | Rs.772.55 | +3.65% | 36,730.20 | +0.10% |
Key Takeaways
Positive Signals: Finolex Cables outperformed the Sensex by a wide margin, gaining 7.07% versus the benchmark’s 1.51% over the week. The upgrade to a Hold rating by MarketsMOJO reflected improved technical momentum and attractive valuation, with a price-to-book ratio of 1.9 supporting the stock’s fair value. Institutional ownership at 25.19% provides a stabilising influence. The weekly MACD and KST indicators turned mildly bullish, signalling potential for further recovery.
Cautionary Notes: Despite the weekly gains, monthly technical indicators remain bearish, and daily moving averages continue to signal short-term selling pressure. Volume was generally subdued except for the final trading day, indicating tentative investor conviction. The company’s recent flat financial results and declining cash reserves may constrain near-term operational flexibility. Long-term returns remain strong, but recent underperformance relative to the Sensex over one year highlights sector-specific challenges.
Conclusion
Finolex Cables Ltd. demonstrated a strong weekly performance, driven by a combination of technical upgrades, valuation appeal, and renewed buying interest. The stock’s 7.07% gain significantly outpaced the Sensex, reflecting improving investor sentiment amid mixed technical signals. While the upgrade to a Hold rating and mildly bullish weekly momentum indicators suggest a stabilising outlook, caution remains warranted given bearish monthly trends and modest volume. Investors should monitor upcoming financial results and sector developments for confirmation of a sustained trend reversal. Overall, Finolex Cables appears to be navigating a transitional phase, balancing short-term volatility with solid long-term fundamentals.
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