The near-term outlook for the stock of GAIL (India) is bullish. The stock rose over 4 per cent on Monday when the broader market fell sharply over 2 per cent. Support for the stock is at ₹155. This has been holding well over the last few days amid the volatility and the fall seen in the broader markets. This support can continue to hold in the coming days as well. While above this support, the chances are high for the stock to rise towards ₹173-₹175 by this week itself or next week. Traders with high risk appetite can go long at current levels and also accumulate at ₹157.
Stop-loss can be kept at ₹153. Trail the stop-loss up to ₹163 as soon as the stock moves up to ₹166. Move the stop-loss further up to ₹167 as soon as the stock touches ₹169. Book profits at 172. The region between ₹173 and ₹175 is a good short-term resistance which can hold on its first test. As such the chances are high for the stock to reverse lower from the ₹173-₹175 region. So traders will have to exit the longs as the stock approaches this resistance zone.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)