Momentumisers: Here is why Gujarat Gas is on a high

Gujarat Gas was up 4 percent on Monday, June 28. The stock hit a 52-week high in the past week and from there, it saw nearly 10 percent correction but it took support at around 20-day moving average (DMA) and bounced yesterday. So can it hit a 52-week high again – that’s something to track. The stock is at Rs 705.

Delivery volumes were low compared to its averages, so no big data point coming from there, but it appears that if the stock trends a bit higher, the shorts get squeezed out in the near contract and that could take place as well and that’s why the stock is on a momentum.