The stock of Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) gained 4.3 per cent with above average volume on Thursday, breaking above a key resistance level of ₹162. This rally provides traders with a short-term horizon an opportunity to buy the stock at current levels. Since registering a 52-week low at ₹95.7 in late March this year, the stock has been in a medium-term uptrend. Also, the stock has been in a short-term uptrend since it took support at around ₹130 in late May. Recently, the stock surpassed a key barrier at ₹162 and has strengthened the medium-term uptrend. Moreover, the stock has breached its 200-day moving average and trades well above the 21- as well as the 50-day moving averages. The daily relative strength index has entered the bullish zone and the weekly RSI is likely to enter the bullish zone from the neutral region. Besides, the daily and the weekly price rate of change indicators are featuring in the positive terrain, implying buying interest. The short-term outlook is bullish for the stock.
It can extend the uptrend and hit the price targets of ₹178 and ₹181 in the forthcoming trading sessions. Traders can buy it with a stop-loss at ₹166.5. (Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)