Top trending stock: Gujarat Gas Limited

The stock has witnessed huge buying interest at lower levels and has soared about 1% in the first hour of Monday’s trading session.

Gujarat Gas is a midcap company, engaged in the processing, transmission, and distribution of natural gas. It supplies gas to industrial, commercial, and domestic customers. With a market capitalization of about Rs 45000 crore, it is one of the strongest company in its sector.

The stock was in a narrow consolidation range of about 668-651 for the past three days. It has witnessed huge buying interest and has soared about 1% in the first hour of Monday’s trading session. With this, the stock has broken out of its upper limit and trades near Rs 674. Moreover, it has seen huge buying at a lower level of about Rs 654, which saw the stock bounce back sharply thereafter. Interestingly, this level happens to be near 100-DMA and 200-DMA. Thus, this level happens to be a key support level for the stock. Today’s price action is supported by good volumes, which highlights positive participation in the stock.

With today’s strong price action, the stock has surged over its 20-DMA and looks bullish for the short term. With this, the stock trades above all the key short term and long term moving averages, making it technically strong. The 14-period daily RSI has taken out its prior swing high and indicates good strength in the stock. The trend indicator ADX is rising steadily above 20 and signals strong trend strength in the stock. Moreover, the daily MACD is about to give a bullish crossover. The other momentum oscillators and indicators point towards the bullish sentiment of the stock. 

On a YTD basis, the stock has generated over 6% returns which is much better than Nifty’s return of nearly negative 1%. The stock has also outperformed most of its peers during the same period. This pretty much summarizes the stock’s bullish short term performance.

With its ongoing bullishness, the stock is expected to continue its momentum on the higher side. Positional traders can consider this stock for some decent gains in the short to medium term, as validated by its strong price action and technical indicators.