Stock to buy: Gujarat Ambuja Exports shares see technical breakout, poised for up to 25% upside, says Anand Rathi

Gujarat Ambuja Exports share price jumped over 9% on Tuesday led by heavy buying momentum in the stock and increased volumes. Gujarat Ambuja Exports shares rallied as much as 9.61% to ₹148.20 apiece on the BSE.

Gujarat Ambuja Exports shares saw heightened trading volumes as around 1 crore shares changed hands on Tuesday as against one week average volume of 13 lakh shares.

In the past one month, Gujarat Ambuja Exports stock has given a minor 2% return, while it has fallen over 20% year-to-date (YTD). Gujarat Ambuja Exports shares rose over 15% in the past one month.

However, on the technical front, analysts believe Gujarat Ambuja Exports shares have sustained an upside breakout above its bearish trendline and the sentiment on the stock has shifted.

Gujarat Ambuja Exports Share Technical Outlook

Over the past year, Gujarat Ambuja Exports share price has established a robust support level within the range of ₹130-132, undergoing multiple tests that have demonstrated its resilience in the face of downward pressure.

“Recently, there has been a significant development as Gujarat Ambuja Exports stock broke above a bearish trendline that had constrained its movement for the past 4-5 months, and notably, it has sustained this breakout. This suggests a fundamental shift in market sentiment towards the stock,” said brokerage firm Anand Rathi.

On the indicator front, the weekly Relative Strength Index (RSI) has surpassed its own bearish trendline, signaling bullish momentum in the short to medium term.

Considering these technical indicators, Anand Rathi advises traders and investors to initiate long positions in Gujarat Ambuja Exports shares within the range of ₹137-142. It has set an upside target of ₹174 apiece, implying an upside potential of 25%.

To manage risk, the brokerage firm recommends placing a stop-loss order near ₹122 on a daily closing basis, aiming to protect against adverse movements in the market.

At 1:30 pm, Gujarat Ambuja Exports shares were trading 8.32% higher at ₹146.45 apiece on the BSE.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.