- The attached weekly timeframe chart of Gujarat Pipavav Port Ltd (GPPL) seems to have reversed its corrective leg during this week as the stock price showed smart upside bounce back, as per week’s closing.
- Presently, the stock price has bounced back sharply from near the support of Rs.150-early March-17, as per the concept of change in polarity (green dashed horizontal line) and closed above it. This is positive indication.
- The positive sequence of higher tops and bottoms is intact and the recent swing low of Rs.150 levels could now be considered as a new higher bottom of the sequence. Now, one may expect further upmove from here to form a next higher top of the sequence.
- Weekly 13 period positive swing indicator like +DMI has turned up post formation of pivot high at 31 levels on mid of Feb- 17. Weekly trend strength indicator like 13 period ADX is now making attempt to turn up from near 20 levels.
- Both of above patterns of +DMI and ADX oscillators are indicating that the uptrend strength and the upside momentum in the stock price is increasing.
- The overall positive chart and momentum pattern of GPPL is suggesting a long trade set up for near term. One may look to buy GPPL as per the levels mentioned above
Recommendation: HDFC Securities recommends investors to buy Gujarat Pipavav Port between Rs164.95 and Rs151 for targets of Rs185/210 with a stop loss placed at Rs147.50 in 1-2 months.
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