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We recommend a buy in the stock of Great Offshore from a short-term horizon. It is apparent from the charts of the stock that following a medium-term downtrend from its February 2012 peak of Rs 140, it found support at around Rs 75 in early June. The stock bounced up in late July after testing the support around Rs 75. Since then, the stock has been on a nascent short-term uptrend.
In early September, the stock managed to surpass its 200-day moving average and is hovering well above it. Strengthening its uptrend, the stock jumped 3.8 per cent, breaching its immediate resistance around Rs 99 on Tuesday. We observe that there is an increase in daily volume in the past two trading sessions. Both daily as well as weekly price rate of change indicators are featuring in the positive terrain implying buying interest. The daily moving average convergence divergence indicator has signalled a buy.
We are bullish on the stock from a short-term perspective. We anticipate its rally to continue and reach our price target of Rs 106 or Rs 108 in the forthcoming trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 99.20 levels.
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