Last week, the stock's significant long-term support at Rs 1,060 arrested its decline from the 52-week high registered in late February 2012 at Rs 1,279. Triggered by slightly better than expected March 2012 quarter results and positive divergence in the daily relative strength index, the stock rebounded strongly. It zoomed 10.4 per cent with extraordinary volumes for the week. The stock has conclusively breached its 200-day moving average and is hovering well above it. However, it is facing key long-term resistance at Rs 1,240. An emphatic breakthrough of this resistance will take the stock higher to Rs 1,279 and to 1,300 in the medium-term.

Conversely, inability to surpass Rs 1,240 can pull the stock down to Rs 1,130 and then to Rs 1,102 levels. Next important support is at Rs 1,060. A decisive fall below this level will strengthen bearish momentum and pull the stock down to Rs 1,000 in the medium-term.

GAIL India (Rs 331)

The stock tumbled 8.5 per cent decisively breaking through a key long-term support level of Rs 350 in the previous week. This decline has reinforced the stock's intermediate-term downtrend that has been in place from January 2011 peak of Rs 535. Moreover, the stock's long-term uptrend that was in place since October 2008 has been mitigated. The weekly relative strength index is featuring in the bearish zone and the monthly RSI has entered this zone. The stock is hovering way below its 50 and 200-day moving averages. It can prolong its downtrend and test support at Rs 309 and then Rs 280 in the medium-term.

Key resistances are at Rs 350, Rs 383 and then Rs 400. Only a strong rally above Rs 440 will alter the stock's downtrend and take it higher to Rs 475 in the long-term.

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