Today's Pick

Gujarat Mineral Development Corporation: Buy

| Updated on: Mar 22, 2011
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Investors with short-term perspective can consider buying the stock of Gujarat Mineral Development Corporation. It is evident from the charts of the stock that following a medium-term downtrend from its November 2010 peak of Rs 172, it found support around its long-term base level of Rs 100 in early February 2011. Since then, the stock has been on a short-term uptrend. We notice that the advance days of this rally have been backed with good volumes which indicate strength in the current uptrend.

The stock has breached its immediate resistance and 200-day moving average around Rs 130 by gaining five per cent in the last two trading sessions. Moreover, it is hovering well above its 21- and 50-day moving averages. The 14-day relative strength index is featuring in the bullish zone and weekly RSI is heading towards this zone in the neutral region. Daily moving average convergence divergence indicator is hovering in the positive territory and weekly MACD has signalled a buy. Our short-term outlook on the stock is bullish. We anticipate it to move higher until it hits our price target of Rs 138 or Rs 144 in the forthcoming trading sessions. Traders with short-tem horizon can buy the stock with stop-loss at Rs 132.

Published on March 22, 2011

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