The stock of GIC Housing Finance gained 10 per cent accompanied by above average volume on Wednesday, following a near-term corrective decline. With this rally, the stock appears to have resumed its short-term uptrend and provides traders with a short-term perspective an opportunity to buy it at current levels. After a sharp fall in February and early March, the stock recorded a 52-week low at ₹52 and found support in late March. Triggered by positive divergence on the daily relative strength index (RSI), the stock changed direction and has been in a medium-term uptrend since then. In May the stock took support at around ₹62 and continued to trend upwards, breaching the 21- and 50-day moving averages. The stock currently trades well above these moving averages. The daily RSI has re-entered the bullish zone from the neutral region and the weekly RSI hovers in the neutral region. The short-term outlook is bullish for the stock. It can trend upward and reach the price targets of ₹94.5 and ₹96 in the coming trading sessions. Traders can buy with a stop-loss at ₹88.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)