GMDC

We recommend a buy in the Gujarat Mineral Development Corporation (GMDC) stock from a short-term perspective. It is apparent from the charts of GMDC that it has been on a medium-term uptrend since the March low of Rs 31. The stock has been forming higher peaks and higher lows since this trough. On April 15, the stock conclusively broke through a resistance at Rs 54, by gaining 10 per cent, with heavy volume. The stock resumed its uptrend on May 5 by surging 7 per cent following a minor pull back. We notice above average volume during the stock’s recent surge. GMDC is trading well above 21 and 50-day moving averages. The daily relative strength index (RSI) has re-entered in to the bullish zone from the neutral region and weekly RSI is steadily heading towards the bullish zone. Our short-term forecast on this stock is bullish. We expect the stock to move up further until it hits our price target of Rs 65 in the upcoming sessions. Traders with short-term trading perspective can buy the stock while maintaining a stop-loss at Rs 55.