We recommend a buy in the stock of Gati from a short-term perspective. It is evident from the charts of the stock that after bottoming out in February at Rs 50, the stock has been trending higher. It has been on a medium-term uptrend forming higher peaks and higher troughs since then.

However, following a minor pull back decline from its recent peak of Rs 79, the stock found support just above its long-term base level at Rs 65. The stock subsequently jumped higher reinforcing the bullish momentum on Wednesday. It has surged four per cent accompanied by above average volume in that session.

The stock is hovering well above its 50- and 200-day moving averages. Both daily and weekly relative strength indices are inching higher in the neutral region towards the bullish zone. Daily as well as weekly moving average convergence divergence indicators are featuring in the positive territory.

As the stock is currently reversing higher from its long-term support level, we are bullish on it in the near future. We anticipate its up move to sustain further and reach our price target of Rs 73 or Rs 75 in the upcoming trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 68.

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