Technical Analysis

Gruh Finance (₹316.8): Buy

Yoganand D BL Research Bureau | Updated on December 20, 2018 Published on December 20, 2018

Investors with a short-term horizon can buy the stock of Gruh Finance at current levels. The stock has been on a medium-term uptrend since taking support at around ₹250 in late October this year. But the stock encountered a key resistance in the ₹300-310 band in mid-November and moved sideways with a positive bias. During the sideways movement, the stock surpassed its 21- and 50-day moving averages and trades well above them.

On Thursday, the stock jumped 5 per cent with above average volume breaking above the key resistance band mentioned above. Moreover, the stock’s recent rally has also decisively surpassed its 200-day moving average. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is charting toward the bullish zone in the neutral region. Both the daily and weekly price rate of change indicators feature in the positive terrain implying buying interest.

Overall, the short-term outlook is bullish. The stock can continue to trend upwards and reach the price target of ₹331 and ₹337 in the coming days. Traders can buy the stock with a stop-loss at ₹309.

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

Published on December 20, 2018
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