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Investors with a short-term horizon can buy the stock of Gujarat State Fertilizers & Chemicals at current levels. The stock appears to have halted the near-term down move that had begun from the early January high of ₹88.
The support in the band between ₹70 and ₹72 is a significant long term base that acted as cushion for the stock. Moreover, the intermediate-term uptrend that commenced from the 52-week low of ₹29.9 in late March 2020 continues to be intact and provided base recently.
Notably, the stock has also formed a bullish engulfing candlestick pattern on the daily chart by gaining 5 per cent on Thursday that implies short-term trend reversal.
The daily relative strength index has bounced up from the 40-level and continues to feature in the neutral region with an upward bias.
Overall the short-term outlook is bullish. It has strength to extend the rally and reach the price targets of ₹80 and ₹82. Traders with a short term view can buy the stock with a stop-loss at ₹74.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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