The Shah of Mahindra
Anish Shah, MD of Mahindra group, on his life and times and on enhancing empowerment and diversity in the ...
We recommend a buy in the stock of Gateway Distriparks from a short-term perspective. It is evident from the charts of the stock that after encountering resistance around Rs 145 in January 2010, the stock was on an intermediate-term downtrend until it found support at Rs 100 towards the end of December.
Taking support from its long-term base at Rs 100, the stock changed direction. In the first week of February, it breached its 21- and 50-day moving averages emphatically and is currently hovering well above them. On February 16, the stock decisively broke out of its down trend-line and a significant long-term resistance at Rs 115 by gaining 5.6 per cent with above average volume. Moreover, it has penetrated its 200-day moving average positioned at Rs 111.
The daily relative strength index is featuring in the bullish zone and weekly RSI is on the verge of entering in to this zone. Daily moving average convergence divergence indicator has indicated a buy and has entered in to the positive territory implying upward momentum. Considering the recent break-out of key resistance we are bullish on the stock from a short-term point of view. We expect it's current up move to extend until it hits our price target of Rs 123 or Rs 126 in the days ahead. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 116.
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