Technical Analysis

Gujarat Gas (₹447.95): SELL

Gurumurthy K |BL Research Bureau | | Updated on: Jun 14, 2022

Accumulate shorts on a rise at ₹465

The outlook for the stock of Gujarat Gas is bearish. The stock had tumbled 13 per cent last week. The sell-off continues and the stock extended the fall by another 7 per cent on Monday. This keeps the overall trend down. Immediate support is at ₹437. In case if the stock manages to bounce from this support, a corrective bounce to ₹470-₹480 is possible. A head and shoulder reversal pattern is also visible on the weekly chart.

The neckline resistance of this pattern is around ₹470. The level of ₹480 is a strong support-turned-resistance. As such the ₹470-₹480 will be a strong resistance zone and a rise beyond ₹480 is less likely as fresh sellers are likely to emerge at higher levels. As such the stock is likely break below ₹437 eventually and fall to ₹360-₹350 in the next one-two months. Traders can go short at current levels. Accumulate shorts on a rise at ₹465. Keep the stop-loss at ₹490. Revise the stop-loss down to ₹438 as soon as the stock falls to ₹426. Move the stop-loss further down to ₹410 as soon as the stock touches ₹395 on the downside. Book profits at ₹380.

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

Published on June 14, 2022
  1. Comments will be moderated by The Hindu editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.

You May Also Like

Recommended for you