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Investors with a short-term horizon can buy the stock of General Insurance Corporation of India at current levels. The stock found support at around ₹120 in late September following a medium-term downtrend from the July high of ₹169.60.
Thereafter, the stock moved sideways in the band between ₹118 and ₹130 from late September until late November. The stock gained strongly breaking above the key resistance level of ₹130 in late November and continued to trend upwards.
While trending up, the stock surpassed a key resistance at ₹140 as well as the 200-day moving average in early December. Taking support from ₹140, the stock appears to have resumed the uptrend as it gains 3 per cent with above average volume on Thursday. The daily relative strength index continues to feature in the bullish zone and the weekly RSI is charting higher in the neutral region towards the bullish zone.
Besides, the daily and the weekly price rate of change indicators are hovering in the positive terrain. Outlook is bullish and the short term targets are ₹152 and ₹155. Trader can buy with a stop-loss at ₹141.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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