The stock of Gujarat Industries Power Company (GIPCL) has gained 5.5 per cent with above average volume on Tuesday and has breached the medium-term down trend-line. The gaining bullish momentum provides traders with a short-term perspective an opportunity to buy the stock at current levels. The stock recorded a 52-week high at ₹94.5 in mid-December 2020 and witnessed a corrective decline. However, the stock found support at around ₹72 in early February this year and began to move higher. The stock once again took support at around ₹72 in late April and started to trend upwards. Recently, the stock had surpassed the moving average compression (21-, 50- and 200-day moving average) at around ₹76 and it continued to trend upwards. There has been an increase in volume over the past three trading sessions. The daily relative strength index features in the bullish zone and the weekly RSI has entered this zone from the neutral region. Overall, the short-term outlook is bullish. Targets are ₹90 and ₹92. Traders can buy the stock with a stop-loss at ₹84.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)
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