RailTel, GAIL, Mphasis, GMDC: Trading strategies for these buzzing stocks

Indian benchmark indices managed to post strong gains on Tuesday on the back of positive domestic and global cues, supported by buoyancy driven by monsoon and budget buzz. BSE Sensex jumped 391.26 points, or 0.49 per cent to end at 80,351.64. The Nifty50 index gained 112.65 points, or 0.46 per cent, to settle at 24,433.20 for the day.

 

Some buzzing stocks namely Gujarat Mineral Development Corporation Ltd (GMDC), Mphasis Ltd, Railtel Corporation of India Ltd and GAIL (India) Ltd are likely to remain under the spotlight of traders for the session today. Here is what various brokerage firms have to say on these stocks ahead of Wednesday's trading session:

 

GAIL (India) | Buy | Target Price: Rs 250 | Stop Loss: Rs 218

GAIL has been in a steady uptrend for over 7 months with gradual rise in volumes. It has been forming a base-on-base pattern holding above its short-term moving average, which suggests inherent strength in price and momentum. The stock has recorded a fresh breakout from the elevated basing pattern with decent volumes highlights bullish tone to continue. Traders can consider fresh longs in the mentioned range.
Recommended by: Religare Broking

 

Railtel Corporation of India | Buy | Target Price: Rs 570-585 | Stop Loss: Rs 480

RailTel has demonstrated a breakout above the ‘Consolidation zone’ pattern between Rs 490-340 on the weekly chart, indicating the continuation of the medium-term uptrend. The stock took support at the 38 per cent Fibonacci retracement level of a rally from Rs 96-491, positioned at Rs 338, confirming a medium-term support base. The stock closed above the weekly upper Bollinger Band, generating a medium-term buy signal. The weekly RSI strength indicator is holding above its reference line indicating positive bias. The above analysis indicates an upside of Rs 570-585 levels.
Recommended by: Axis Securities

 

Gujarat Mineral Development Corporation | Buy | Target Price: Rs 465 | Stop Loss: Rs 405

After a vertical upward rally, GMDC witnessed a correction after hitting record high levels. The consolidation resulted in the formation of a triangle pattern with relatively lower volumes, which denotes a lack of selling pressure. This week, the stock has registered a breakout from the mentioned pattern with supportive momentum suggesting resumption of the prior up trend.
Recommended by: Religare Broking

 

Mphasis | Buy | Target Price: Rs 2,813-2,855 | Stop Loss: Rs 2,455

Mphasis is trending within a rising channel, indicating it has found support at the lower band and is moving towards the upper band, suggesting an uptrend. On the daily chart, the stock has formed an inverted head and shoulders pattern and has successfully broken above the neckline at 2550, indicating the beginning of a short-term uptrend. It is positioned above key short and medium-term moving averages of 20, 50, 100, and 200 days, reinforcing a positive bias. The weekly strength indicator RSI is holding above its reference line, indicating positive bias. The above analysis indicates a potential upside target of Rs 2,813-2,855.
Recommended by: Axis Securities

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions