The stock of Gujarat Industries Power Company (GPCIL) surged 4.7 per cent with good volume on Thursday thereby extending its weekly gains to 6 per cent. Since taking support at around ₹65 in August 2015, the stock has been on a long-term uptrend, forming higher peaks and troughs. However, the stock encountered a key resistance at ₹116 in January this year and started to move sideways in the band between ₹102 and ₹116. Within this range, the stock took support just above the lower boundary and also from a long-term up trend-line early this weekly and began to move higher. It has emphatically breached its 21- and 50-day moving averages on Thursday and trades well above them.
The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI has also entered the bullish zone backing the uptrend. Both the daily as well as the weekly price rate of change indicators are featuring in the positive terrain indicating buying interest.
The short-term outlook is bullish for the stock of Gujarat Industries Power Company. The stock can continue its uptrend and reach the price targets of ₹116 and ₹118 in the upcoming trading sessions. Traders with a short-term horizon can buy the stock with a stop-loss at ₹108.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.