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Investors with a short-term perspective can consider buying the stock of Gujarat Pipavav Port at current levels. The stock has been on an intermediate-term downtrend since registering an all-time high at ₹262 in April 2015. However, in late December 2015, the stock found support at around ₹140. It tested this level again in mid-January before bouncing up decisively.
The stock has formed a falling wedge pattern between October 2015 and January 2016, which has bullish implications. Last week, the stock broke out of this pattern, gaining 8.7 per cent. In January, the stock surged 14 per cent. It has also conclusively breached its 21- and 50-day moving averages and hovers well above these levels. The indicators on the daily chart are trending upwards backing the stock’s ongoing rally. A decisive breakthrough is possible in the near future that can take it higher to ₹165 and ₹168. Traders can buy the stock with a stop-loss at ₹155.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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