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Investors with a short-term perspective can buy the stock of Gujarat Gas at current levels. Since late May, the stock has been in a sideways consolidation phase in a wide band between ₹160 and ₹192. Within this range, the stock took support at around ₹167 in early October and began to trend upwards.
The stock has been in a near-term uptrend since early October. While trending up, the stock had breached its 21- and 50-day moving averages in mid-October and currently hovers well above these averages. Experiencing buying interest, the stock gained 4 per cent in the last session. This rally has reinforced the bullish momentum.
The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI has also entered this zone implying bullish momentum. Moreover, both the daily and the weekly price rate of change indicators are hovering in the positive terrain implying buying interest.
The stock has potential to trend upwards and test the upper boundary in the near-term. A break above it can take the stock higher. Targets are ₹192 and ₹196. Traders can buy with a stop-loss at ₹180.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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