Technical Analysis

Gujarat Gas (₹237.6): Buy

Yoganand D | Updated on January 01, 2020 Published on January 01, 2020

Representational image.   -  istock.com/stephenmccluskey81

Investors with a short-term perspective can buy the stock of Gujarat Gas at current levels.

On Tuesday, the stock gained 3.6 per cent accompanied by above average volume breaking above a key resistance at ₹232. The stock appears to have resumed its medium as well as the short-term uptrends.

Since it took support at ₹116 in late February 2019, the stock has been in a long-term uptrend, forming higher peaks and troughs. Following a recent sideways corrective movement, the stock took support at ₹220 and continued to trend upwards.

The stock hovers well above the 21- and 50-DMAs. The daily relative strength index has re-entered the bullish zone from the neutral region and the weekly RSI continue to feature in the bullish zone. Similarly, the daily price rate of change indicator has re-entered the positive terrain implying buying interest.

With the bullish momentum in place, the stock has the potential to trend upwards and reach the price targets of ₹247 and ₹252 in the coming trading sessions. Traders with a short-term perspective can buy the stock with a stop-loss at ₹232 levels.

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

Published on January 01, 2020
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