GAIL (India) Limited - BUY
CMP Rs360, Target Rs398, Upside 10.5%
After hitting lows of Rs320 in mid-November 2013, GAIL has been steadily consolidating. Accumulation between the Rs320 - Rs353 range has been on for almost three months now.
In this process, the stock formed an ascending triangle pattern, which is considered to be bullish. GAIL broke out of the ascending triangle pattern on January 31, 2014 on the daily charts. The breach has been accompanied with strong up-tick in traded volumes, adding credence to the breakout.
Given the intermediate uptrend, the stock is expected to rise post the breach of the ascending triangle pattern. We recommend a BUY on GAIL at current levels for a potential upside target of Rs398. Traders are advised to keep a strict Stop Loss of Rs330.
CMP Rs360, Target Rs398, Upside 10.5%
After hitting lows of Rs320 in mid-November 2013, GAIL has been steadily consolidating. Accumulation between the Rs320 - Rs353 range has been on for almost three months now.
In this process, the stock formed an ascending triangle pattern, which is considered to be bullish. GAIL broke out of the ascending triangle pattern on January 31, 2014 on the daily charts. The breach has been accompanied with strong up-tick in traded volumes, adding credence to the breakout.
Given the intermediate uptrend, the stock is expected to rise post the breach of the ascending triangle pattern. We recommend a BUY on GAIL at current levels for a potential upside target of Rs398. Traders are advised to keep a strict Stop Loss of Rs330.