SBI Life, Grasim Industries and Gujarat Gas have had a breakout, say analysts

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SBI Life, Grasim Industries and Gujarat Gas have had a breakout, say analysts

SBI Life, Grasim Industries and Gujarat Gas can be good short-term trading bets with a 1 -- 2 month view, said analysts. The three stocks have had a breakout and analysts said the momentum is positive on the three counters.

The stock price has broken out of a symmetrical triangle at 1274 -- 1275. The 50 day MA crossed above the 100 day MA after a breakout out of the price pattern, which confirmed the bullishness in the stock. The price move has prompted an increase in volumes that are higher than the 20 day average, confirming the participation of volumes in the price move. The internal strength of the up move remains intact, as the Relative Strength Index RSI is headed towards the overbought zone. Current levels are attractive to buy with a favorable risk-reward ratio.

Foram Chheda, CMT is a Technical Research Analyst and Founder of ChartAnalytics.co. Grasim closed at 1,819. It had a 52 week low of 1,276 and made a 52 week low. On June 17 there was 60 and a 52 week high of Rs. The 200 day Exponential Moving Average DEMA on the daily chart is currently at Rs 1,621. The short term, medium term and long term bias is positive for the stock as it is trading in higher high-low on the chart, which is bullish in nature. Stock is forming an Inverse Head and Shoulder pattern on the weekly chart and has given the neckline breakout of pattern along with high volumes, so there is more upside in the stock in the near term. For an upside target of Rs 1,960 -- 2,010 levels with stop loss below Rs 1,710 level, one can buy it in the range of 1,800 -- 1,810 levels. The time horizon is 1 -- 2 months.

The stock closed at Rs 516.30 on December 2. It hit a 52 week low at Rs 403.55 on June 23 and a 52 week high of Rs. The 200-day Exponential Moving Average DEMA of the stock on the daily chart is currently at Rs 512.50 The stock is trading in a higher high-low on charts, which is bullish in nature. The stock has given the breakout and has formed a Continuation Triangle pattern on the weekly chart. Following up buying is anticipated in the stock in the coming days, as it has managed to close above the same. One can buy in the range of Rs 505 -- 509 levels for the upside target of Rs 560 -- 580 level with stop loss below Rs 480 level.