The stock of Gujarat Narmada Valley Fertilizers & Chemicals gained 5 per cent accompanied by above average volume on Tuesday, breaking above a key resistance at ₹147. This up move provides traders with a short-term perspective an opportunity to buy the stock at current levels.

Since recording a 52-week low at ₹95.7 in late March, the stock has been in a medium-term uptrend. After a corrective decline in early May, the stock found support at ₹124 in late May and resumed the uptrend. The near-term trend is also up for the stocks. While trending up, it had breached its 21- and 50-day moving averages and trades well above them. Moreover, there has been an increase in daily volume over the past two weeks. The daily relative strength index hovers in the bullish zone backing the uptrend and the weekly RSI trends upwards in the neutral region. Further, the daily as well as the weekly price rate of change indicators feature in the positive terrain implying buying interest.

With the recent decisive breakthrough of the key resistance at ₹147, the stock’s short-term outlook is bullish. It has potential to trend upwards and reach the price targets of ₹158.5 and ₹162 in the ensuing trading sessions.

Traders with a short-term horizon can buy the stock with a stop-loss at ₹149.

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

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