Up 2x in 1 year: ICICI Direct suggests buying this Maharatna PSU stock for 3 months; check target and stop loss
GAILs shares had slipped to Rs 173.50 intraday due to severe selling on the day of election results on June 4, although it closed at Rs 190. Since then, good momentum seems to be building here. Except June 10, this stock is closing rapidly every day. From there it has shown a move of more than 15%. The brokerage believes that this boom will continue.
Domestic stock markets rose to new highs on Thursday, boosted by favourable inflation statistics. The BSE Sensex and NSE Nifty rocketed to fresh highs, reaching 77,145 and 23,481, respectively. Notably, the Nifty 50 closed 0.33 per cent higher at 23,398.95, while the Sensex rose 0.27 per cent at 76,810.90.
The top performers of the day in the Nifty 50 included Shriram Finance, HDFC Life Insurance, Divi's Lab, M&M, and Titan, while Hindustan Unilever, ICICI Bank, Axis Bank, Eicher Motors, and Britannia faced losses.
Meanwhile, brokerage ICICI Direct recommended buying this Maharatna PSU Stock from a short-term perspective.
PSU Stock to buy
The brokerage suggested buying gas transmission and marketing company GAIL India stock for three months.
GAIL- Share price target
ICICI Direct has advised to buy GAIL shares for three months. The brokerage has suggested buying in the range of Rs 206-213 with a target price of Rs 240 per share. However, ICICI Direct has kept the stoploss of Rs 196.
The brokerage said that the Oil and Gas Index has been consolidating since mid-February. Now a structural uptrend is being seen here. The choice of brokerage from this sector is GAIL and a breakout has been found here on a technical basis.
GAIL stock performance
In the last one year, the Maharatna PSU stock has given almost 105 per cent returns to its shareholders. While the stock has provided around 32 per cent returns on a year-to-date YTD) basis, and 56 per cent in six months.
Today, June 13, the shares of GAIL closed at Rs 219.8 each, up 1.3 per cent on BSE.
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