Recently while writing on GMDC, I had written about how companies that have a stake in Gujarat were seeing some action in the wake of Modi being projected as the next Prime Minister.
The trigger for the recent rise though maybe in the company getting a licence to distribute and supply gas in Bhavnagar and Botad. This bodes well for the company in the long term. With the public holding in the company being 8.5% (73.70% is held by the Promoter and the rest split between FII’s and DII’s), any accumulation by strong hands may result in sharp price movements.
The weekly chart of the stock is not an attractive one to say the least as the floating lower from mid 2011 onwards but as all things should come to an end, so seems the case here too.
The trend-line is yet to be broken, but the stock has made a higher high in the weekly charts indicating that the worst maybe over for now. A close above 290 though would be the final confirmation that the stock is well and truly out of the bearish period.