Technical Analysis

GAIL (India) ₹339.15: BUY

Gurumurthy K BL Research Bureau | Updated on February 07, 2019 Published on February 07, 2019

The outlook for the stock of GAIL (India) is bullish. The stock surged over 2 per cent on Wednesday. Though the stock dippedinitially on the day, it reversed higher from the 21-day moving average support level of ₹331.

The strong surge on Wednesday has also taken the stock decisively above the key resistance level of ₹336. This level will now act as a good support. Dips to this level is likely to find fresh buyers coming into the market and limit the downside. An upmove to ₹350 is likely in the coming days. A break above ₹350 will then pave way for the next targets of ₹360 and ₹365.

Traders can go long at current levels and also accumulate on dips at ₹337. Stop-loss can be placed at ₹332 for the target of ₹355. Revise the stop-loss higher to ₹342 as soon as the stock moves up to ₹346.

The bullish outlook will get negated only if the stock declines below the 21-day moving average support. The ensuing targets will be ₹325 and ₹320. But such a strong fall breaking below ₹331 – the 21-day moving average, looks unlikely at the moment.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

Read the rest of this article by Signing up for Portfolio.It's completely free!

What You'll Get

This article is closed for comments.
Please Email the Editor