Technical Analysis

Gujarat Apollo Industries (₹224.8): Buy

Yoganand D BL Research Bureau | Updated on May 01, 2018 Published on May 01, 2018

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.)

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