Technical Analysis

GIC Housing Finance (₹162.8): Buy

Yoganand D | Updated on December 24, 2019 Published on December 24, 2019

Investors with a high-risk appetite and short-term perspective can buy the stock of GIC Housing Finance at current levels. After registering a 52-week low at ₹128.5 in mid-October, the stock reversed direction and bounced up triggered by positive divergence on the daily relative strength index. However, the stock encountered a resistance at ₹181 in late October and began to decline. Key support at ₹145 provided base in November and again in early December.

The stock has once again started to rise. On Monday, it jumped 5.3 per cent accompanied by extraordinary volume, conclusively breaching the 21- and 50-DMAs. This rally has strengthened the bullish momentum.

The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI has entered the neutral region from the bearish zone. Besides, the daily as well as the weekly price rate of change indicators are featuring in the positive terrain implying buying interest.

The short-term outlook is bullish for GIC Housing Finance. It has potential to trend upwards and reach the price targets of ₹170 and ₹173. Traders can buy with a stop-loss at ₹158.5.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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Published on December 24, 2019
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