Technical Check: GMR Infrastructure could see 10% rally by September expiry; MACD turns positive

GMR Infrastructure Ltd rallies by over 30 percent so far in the year 2021 marginally outperforming the Nifty50 index which is up a little over 25 percent in the same period.

The stock with a market capitalization of over Rs 21000 cr hit a fresh 52-week high of Rs 36 on the BSE on Wednesday is back on traders’ radar. The recent price action suggests that shares of GMR Infrastructure could rally towards 38-40 levels which translates into an upside of about 13 percent by September expiry.

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The stock has rallied by about 30 percent in just one month which suggests momentum is building in the counter. Data suggests that foreign portfolio investors (FPIs) have increased holdings from 23.75% to 25.08% in Jun 2021 quarter..

Technical indicators suggest that the stock is trading above its short- and long-term moving averages such as 5,10,20, as well as 200-Days Moving Average.

GMR recently gave a positive breakout on MACD chart. Moving average convergence divergence (MACD) is a trend-following momentum indicator. The indicator triggers technical signals when it crosses above (to buy) or below (to sell) its signal line.

“The stock has given a positive breakout on the weekly chart. MACD on the weekly chart also turned positive. It has already crossed its previous high of 33.9 and given a comfortable close above 35,” Rahul Sharma, Co-Founder, Equity99, said.

“Stock is looking very strong on the chart. One can take a position between 35-34.25 with a stop loss of 33.25. On the upper side, stock may touch 38.50---40 levels during September expiry,” he said.

About The Company:

GMR Infrastructure Limited, a leading global infrastructure conglomerate with interests in Airport, Energy, Transportation, and Urban Infrastructure.

GMR Group's Airport portfolio has around 172 Mn passenger capacity in operation and under development, comprising India's busiest Indira Gandhi International Airport in New Delhi, Hyderabad's Rajiv Gandhi International Airport, Mactan Cebu International Airport in partnership with Megawide in the Philippines.

While greenfield projects under development include Airport at Mapa in Goa and Airport at Heraklion, Crete, Greece in partnership with GEK Terna.

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