We recommend a buy in the stock of Gujarat State Petronet from a short-term perspective. It is evident from the charts of the stock that it has been trending upwards since taking support at Rs 63 in May and June 2012. The stock had found a support at Rs 70 in late November and began to move higher. Since then GSPL has been in a short-term uptrend. On Friday, the stock surged more than 4 per cent accompanied by above average volumes, decisively breaking through its key resistance at Rs 78. The stock is hovering well above its 21- and 50-day moving averages. The daily relative strength index has entered the bullish zone and weekly RSI is on the brink of entering this zone. Both the daily and weekly moving average convergence divergence indicators are featuring in the positive territory. We anticipate the rally to continue and reach our price target of Rs 84 or Rs 86 in the approaching trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 79.20 levels.

comment COMMENT NOW