The short-term outlook for the stock of Mahanagar Gas Limited (MGL) is bullish. The stock has been moving up gradually since June last year. However, the resistance at ₹915 was restricting this upmove recently. But last week, the bulls gained substantial momentum and the stock has risen well breaking above the resistance at ₹915. That strong rise indicates the resumption of the overall uptrend.
Even though there might be a minor corrective decline, possibly to ₹915, we anticipate the stock to eventually appreciate to ₹1,100. Intermediate resistance is at ₹1,010. A break above it can trigger the rise to ₹1,100. Traders can go long now. Accumulate on dips at ₹915. Keep the stop-loss at ₹880 initially. When the price rises above ₹1,040, tighten the stop-loss to ₹1,015. Liquidate the longs at ₹1,100
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)