GSPL

Traders with short-term perspective can consider buying the stock of Gujarat State Petronet. The stock was in a medium-term correction from its 52-week high of Rs 104 recorded in December 2009 till February 2010 low of Rs 82. Recently, the stock took twin support (21- and 50-day moving average as well as uptrend-line) at Rs 89 and bounced up reinforcing the bullish momentum by surging 4.4 per cent on April 20. This up move came with high volume. The daily relative strength index is on the verge of entering in to the bullish zone from the neutral region and weekly RSI is rising towards the bullish zone. Moreover, both the daily and weekly moving average convergence and divergence indicators are featuring in the positive territory.

Taking into consideration that the stock's long-term uptrend is intact and the medium-term correction has ended, we are bullish on the stock from a short-term perspective. The stock has the potential of heading higher until it hits our price target of Rs 96.5 and the next target of Rs 100 in the forthcoming trading sessions. Short-term traders can buy the stock with stop-loss at Rs 91.

via BL