Gujarat NRE Coke

We recommend a buy in the stock of Gujarat NRE coke from a short-term perspective. It is visible from the charts of the stock that it has been on an intermediate-term uptrend from its March low of Rs 16.8, making higher peaks and troughs. However, in September the stock met with resistance around Rs 71 and has been since moving sideway in the range of Rs 60 and Rs 71. The stock has a significant long-term support at Rs 60. On December 14 the stock rebounded almost 5 per cent taking support just above this level, accompanied with high volume. We observe formation of a bullish engulfing candlestick pattern signalling short-term optimums. The stock's intermediate-term uptrend-line is in tact. The daily relative strength index (RSI) bounced from 40 level and is heading towards the bullish zone in the neutral region. Both the daily and weekly moving average convergence and divergence indicators are featuring in the positive territory. Our short-term forecast on the stock is bullish. We expect it to move up further until it hits our price target of Rs 73. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 62.

via BL