Short-term traders can look to buy the stock now for a possible target of Rs 250 in the next 1-2 months, suggest experts.
The stock rose from Rs 149 as on 19th December 2023 to Rs 195 as on 18th March 2024 which translates into an upside of over 30% in the last 3 months.
The port stock hit a 52-week high of Rs 218.70 on 1st March 2024, but it failed to hold on to the momentum. It drifted below 20-DMA on the daily charts but bounced back after retesting 50-DMA.
Although the Supertrend indicator has triggered a bearish signal on daily charts, traders with high-risk profiles can buy for a bounce back towards 250 levels, suggest experts.
In terms of price action, the stock is trading below 10,20, and 30-DMA while it is above 5,50,100, and 200-DMA on the daily charts.
The daily Relative Strength Index (RSI) is placed at 50.4. RSI below 30 is oversold and above 70 is considered overbought, Trendlyne data showed.
Gujarat Pipavav Port Ltd has maintained a consistent pattern of higher tops and higher bottoms since June 2022, reinforcing its bullish trajectory.
“Last week, the GPPL stock witnessed a notable polarity, where the previous resistance at the 2015 swing high now serves as a support zone, further affirming its upward momentum,” Vidnyan S. Sawant, Head of Research at GEPL Capital Ltd., said.
“The notable surge in trading volume, exceeding the 21-week average, indicates increased participation from large investors,” he said.
“Notably, the stock is presently trading above key moving averages confirming the continuation of the uptrend. Furthermore, the MACD plotted on the weekly timeframe is on the rise and consistently remains in positive territory, indicating a strengthening momentum in the underlying trend,” highlights Sawant.
“Going ahead, we expect the prices to go higher till the level of 250, the Bullish view will be negated if we see prices sustaining below the 190 level,” he recommended.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)