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Shares of integrated energy company GAIL (India) hit 2-1/2-year high, and technicals suggest further upside.
The stock rose as much as 4.6 per cent to Rs 412, its highest since October 2014.
The stock has cleared a resistance near the psychological level of Rs 400.
Trend intensity indicator has gone up to 16 from Wednesday's level of 14, indicating the start of a new uptrend.
MACD is also positive and above its signal line, which is favourable for the stock.
Compared to broader market, valuations for energy stocks look cheaper; BSE Oil & Gas Index was trading at 12-month forward PE of 13, and broader NSE Index trading at 20.09.
GAIL was trading at a 12-month forward PE of 14.17.
Break above stock's record high of Rs 413.92 hit on October 31, 2014 will further confirm the upside.
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