GNFC (₹293.1)

Investors with a short-term perspective can consider buying the stock of Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) at current levels.

Since taking support at around ₹70 in March 2016, the stock has been on a long-term uptrend until hit a new high of ₹322 in early May. After hitting ₹322, the stock was on a corrective decline till it found support at ₹270 last week.

The stock’s long-term uptrend-line and key short-term support arrested the fall at around ₹270. Strengthening the uptrend, the stock gained 4.6 per cent with above average volume on Wednesday. The stock has closed above its 50-DMA which is also a positive sign.

The short-term outlook is bullish for the stock. It can extend its uptrend and reach the price target of ₹305 and ₹311 in the ensuing trading sessions.

Buy the stock with a stop-loss at ₹287.

(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