The stock of GHCL jumped 7 per cent on Monday, conclusively breaking through its long-term resistance at ₹60. This gives traders with a short-term perspective an opportunity to buy the stock. Since taking support at ₹29 in September 2013, the stock has been trending northwards. Medium- and short-term trends are up for the stock. It struggled to break the key long-term resistance over the last two months. During this period, the stock moved sideways in the band between ₹50 and ₹60 with a positive bias. The stock is hovering well above its 21- and 50-day moving averages.
The relative strength index on the daily chart has entered the bullish zone from the neutral region. The daily moving average convergence divergence indicator has signalled a buy. Also, price rate of change indicators are hovering in the positive terrain implying buying interest. Our short-term forecast on GHCL is bullish. Targets are ₹67 and ₹68.5 levels. Buy the stock with a stop-loss at ₹63.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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