The stock of Godawari Power & Ispat rose 5 per cent on Wednesday. Volume was extraordinary, at more than 6.4 times its recent average. The stock’s downtrend came to a halt at the key long-term support of around Rs 62 in early August 2013. Since then, the stock has been on a medium-term uptrend. Within this uptrend, the stock has been moving sideways over the past three months in the range of Rs 80 and Rs 95. Recently, the stock took support at the lower boundary of this range and has started moving upwards. The 200-day moving average at around Rs 80, cushioned the stock. It is now hovering well above the 50- and 200-day moving averages. The moving average convergence divergence indicators have entered the positive territory. The price rate of change indicators are also giving bullish signals.
The stock’s current upmove can extend and reach the price target of Rs 92.5 or Rs 95 in the forthcoming trading sessions. Traders with a short-term perspective can buy the stock with a stop-loss at Rs 86.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)