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We recommend a buy in the stock of Gokul Refoils and Solvent from a short-term perspective.
It is evident from the charts of the stock that it has been on a long-term uptrend from its February 2009 low of Rs 35.
Following a short-term steep correction in December 2010, the stock found support in the range between Rs 70 and Rs 73 where significant support and uptrend-line provided base.
Subsequently, the stock bounced up and has been on a short-term uptrend. The stock jumped 4.3 per cent with good volumes on Wednesday, reinforcing the bullish momentum.
It is trading well above its 21- and 50-day moving averages. The daily and weekly relative strength indices are inching higher in the neutral region towards bullish zone.
Both daily and weekly moving average convergence divergence oscillators are featuring in the positive territory implying upward momentum.
We are bullish on the stock from a short-term perspective.
We anticipate the stock's up move to prolong until it hits our price target of Rs 100 or Rs 103 in the forthcoming trading session.
Short-term traders can consider buying the stock with stop-loss at Rs 94.
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