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Investors with a short-term perspective can buy the stock of GHCL at current levels. The stock changed direction and started to decline after marking a multi-year high at ₹107 in September last. It was on an in intermediate-term downtrend until it found support at around ₹55 last month. The stock reversed thereafter forming a bullish engulfing candlestick pattern — a bullish reversal.
On Tuesday, the stock resumed its uptrend and also breached the 200-day moving average at around ₹75 by gaining 6 per cent. The relative strength index on the daily chart has re-entered the bullish zone and the weekly RSI is on the brink of entering this zone. Moreover, other indicators on the daily chart feature in the positive territory backing uptrend. The short-term outlook is bullish. The positive momentum can extend and reach our price target of ₹81 and ₹82.5 in the upcoming sessions. Buy the stock with a stop-loss at ₹76.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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