Todays Pick

Gati (₹115)

Yoganand D | Updated on January 08, 2018

Investors with a short-term perspective can consider buying the stock of Gati at current levels. The stock gained 4 per cent accompanied with an above average volume on Monday, breaching the short-term downtrend-line resistance. Moreover, the stock’s rally has also decisively breached its 21- and 50-DMAs, signifying bullish momentum.

Since encountering resistance at around ₹145 in March, the stock has been in a medium-term downtrend. However, the significant base in the band between ₹100 and ₹106 provided support to the stock in August 2017. The stock has reversed higher after testing this support zone last week. Conclusive rally beyond the 50-day moving average also indicates signs of trend reversal. There has been an increase in daily volume over the past four trading sessions.

The daily price rate of change indicator has entered the positive territory implying buying interest. Both the daily and weekly price rate of change indicators are charting higher in the neutral region towards the bullish zone. Taking a contrarian stance, traders with a short-term perspective can consider buying the stock at current levels. The stock can extend its rally and reach the price targets of ₹120 and ₹122 in the coming trading sessions. Buy with a stop-loss at ₹112.5.

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

Published on October 09, 2017

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