Investors with a short-term perspective can consider buying the stock of Gujarat State Fertilizers & Chemicals at current levels. The stock has been in a long-term uptrend since taking support at around ₹57 in early 2016. Following a corrective decline, the stock found support a ₹115 in late June this year. The stock continued to take support at this same level in early August and reseeded its uptrend. Since then, the stock has been on a medium-term uptrend.
After a minor pause at the key resistance level of ₹140, the stock emphatically breached it by gaining 3.6 per cent with above average volume on Monday. Moreover, the stock has decisively breached its 21- and 50-day moving averages. With this rally, the stock has strengthened its medium-term uptrend. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is on the brink of entering the bullish zone from the neutral region.
Both the daily and weekly price rate of change indicators feature in the positive terrain implying buying interest. Outlook is bullish for the stock. Targets are ₹148.5 and ₹151.5 in the coming trading sessions. Traders with a short-term view can buy with a stop-loss at ₹139.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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