The stock of Adani Gas jumped 5.6 per cent accompanied by above average volume on Thursday, decisively breaking above a key resistance at ₹110. This breakthrough provides investors with a short-term perspective an opportunity to buy the stock at current levels.

After a medium-term downtrend, the stock recorded a 52-week low at ₹76.6 and took support in late March this year. Since then, the stock has been trending upwards. But it had encountered a key resistance at ₹110 in late April and began to move sideways in the band between ₹96 and ₹110 until the recent breakthrough. Interestingly, the stock has also conclusively breached its 21- and 50-DMAs and trades well above them.

The daily relative strength index is on the brink of entering the bullish zone from the neutral region and the weekly RSI is hovering in the neutral region.

Overall, the short-term forecast is bullish for the stock. It has the potential to trend upwards and reach the price targets of ₹117 and ₹119 in the ensuing trading sessions. Traders can buy the stock with a stop-loss at ₹109.5.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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