Fiem Industries On Breakout Watchlist: Here’s Why SEBI RA Sneha Vasudeo Flags Bullish Momentum

Auto parts maker, Fiem Industries, is showcasing a bullish continuation pattern, with technical indicators pointing toward sustained upward momentum, according to Sneha Mileen Vasudeo, a SEBI-registered analyst.

The daily chart reveals two well-formed cup formations, backed by supportive volume action, making it a textbook breakout setup, Vasudeo observed.

From a technical standpoint, Fiem Industries stock’s structure remains favorable. It has support at its recent breakout zone of ₹1,540, followed by a deeper support around ₹1,250, marking the lower boundary of the previous consolidation range. She recommends monitoring healthy pullbacks for potential entry opportunities.

Breakout Analysis

In the first trend, the stock formed a rounded base, followed by a breakout accompanied by a sharp uptick in volumes, indicating institutional accumulation. She added that key moving averages supported the breakout.

The second cup formation took shape as the stock consolidated. During this phase, volumes declined, a sign of reduced selling pressure, she highlighted. The breakout from this base occurred with a spike in volume, confirming renewed buying interest, triggering a fresh rally.

Momentum indicators also show a bullish picture. The relative strength index (RSI) has consistently remained above 50 and is currently trading above 70, indicating a strong buying pressure.

Fundamentally, Fiem Industries has reported a 15% increase in March-quarter sales and a 19% rise in EBIT. Mutual funds have also increased their holdings in the stock, from ₹183 crore in March to ₹277 crore in May, signaling growing investor confidence.

At the time of writing, the stock was trading at₹1,858.30, and has 25.15% year-to-date (YTD).

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