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The outlook for the stock of Godfrey Phillips India is bullish. Though this stock began the week on a weak note, it has managed to bounce sharply on Thursday recovering all the losses made in the initial part of the week. The stock surged over 5 per cent on Thursday to close on a strong note.
The upward reversal after testing the 200-day moving average support level of ₹815 indicates that the stock is getting fresh buying interest near the psychological level of ₹800. Immediate support is at ₹850 and the next significant support is in the ₹815-800 zone. An up-move to ₹905 and ₹920 is likely in the short term. A strong break above ₹920 will then increase the likelihood of the stock extending its up-move to ₹965 thereafter.
Medium-term traders can go long at current levels and also accumulate at ₹855 and ₹830. Stop-loss can be placed at ₹805 for a target of ₹965. Revise the stop-loss higher to ₹880 as soon as the stock moves up to ₹895. The bullish outlook will get negated only if the stock breaks below ₹800 decisively. But such a strong fall looks unlikely at the moment.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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