Gujarat Apollo Industries (₹224.8): Buy

Investors with a short-term perspective can buy the stock of Gujarat Apollo Industries at current levels.

Following an intermediate-term downtrend from the all-time high of ₹307.9 in September 2017, the stock found support at ₹188 in late March this year. Subsequently, the stock changed direction and has been in a short-term uptrend. But the stock encountered a key resistance at ₹218 and has been testing it for about a month.

On Monday, the stock jumped almost 10 per cent with above-average volume, decisively breaking above the barrier. Moreover, this rally has also breached its 21- and 50-DMAs. With the current rally, the stock has strengthened its short-term uptrend.

The stock can continue to move higher and hit the price targets of ₹234 and ₹238.5 in the ensuing trading sessions. Traders can buy the stock with stop-loss at ₹219.5.

(Note: These 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





TOPICS

MORE FROM BUSINESSLINE


 Getting recommendations just for you...
This article is closed for comments.
Please Email the Editor