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The outlook for the stock of GAIL (India) is bullish. The stock surged over 2 per cent on Wednesday. Though the stock dippedinitially on the day, it reversed higher from the 21-day moving average support level of ₹331.
The strong surge on Wednesday has also taken the stock decisively above the key resistance level of ₹336. This level will now act as a good support. Dips to this level is likely to find fresh buyers coming into the market and limit the downside. An upmove to ₹350 is likely in the coming days. A break above ₹350 will then pave way for the next targets of ₹360 and ₹365.
Traders can go long at current levels and also accumulate on dips at ₹337. Stop-loss can be placed at ₹332 for the target of ₹355. Revise the stop-loss higher to ₹342 as soon as the stock moves up to ₹346.
The bullish outlook will get negated only if the stock declines below the 21-day moving average support. The ensuing targets will be ₹325 and ₹320. But such a strong fall breaking below ₹331 – the 21-day moving average, looks unlikely at the moment.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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