GMDC hits 52-week high; this PSU share can give about 40% return from current levels in near-term, says analyst

Shares of GMDC (Gujarat Mineral Development Corporation) surged 3% to Rs 162.30 amid volatility in Friday's intraday trade to hit 52-week high on the BSE. The government-owned mineral and mining company has surged more than 100per cent in the last six months.  

At 1.20 PM on Friday, Gujarat Mineral Development Corporation stock was trading with 2 per cent gain or higher by Rs 3.40 to Rs 159.05 apiece on the BSE.  

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Against benchmark Nifty has correcting more than 10% from its high of October 2021, the shares of this government-owned mineral company have surged 135% in the last six months as on March 4.  

As the shares continue to rise against all odds, Santosh Meena, Head of Research, Swastika Investmart Ltd, believes the shares can surge around 40% from current levels.  

"GMDC is in a strong bullish momentum where it has witnessed a breakout of long-term downsloping trendline resistance.  It is taking support at 20-DMA and outperforming the overall market where we can expect an immediate target of Rs 180," says Meena 

He said the shares have the potential to head towards 220-225 area in the near term. "On the downside, 20-DMA of Rs 135 is immediate support, while Rs 115 is major support at any correction," he added.  

Aazhar Mohammad, Chief Strategist – Technical Research and Trading Advisory, Chartviewindia.in, too has recommended a buy for  

This counter seems to have registered a consolidation breakout on huge volumes, after witnessing a range-bound move for a couple of weeks, said Aazhar.  

"If the stock sustains above the intraday low of 140 levels, then it should head higher to test the interim top-placed around 180 levels. Therefore, positional traders can look to buy now and should prepare to add on a dip into the zone of 150 – 145 levels. A stop-loss suggested for the trade is a close below 140 levels," he added.  

Incorporated in 1963, Indian state-owned minerals and lignite mining company boasts of a vast array of Mineral Portfolio in its mineral rich basket. It is headquartered in Ahmedabad, Gujarat.

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)