GAIL stock has given a multiyear breakout near the level of Rs 320 and is marching towards the uncharted territory.
Looking at the current market situation on a longer time-frame chart, we have seen that in the last two months Nifty has gone down from the level of 11,760 towards the 10,000. Bulls got support at the first line of defence where the intermediate trend line was place that is level of 10,000 and recently on a lower time-frame chart we have seen that the spectacular rally has really surprised the market towards the northern trajectory.
We are of the opinion that 10,700 could act as a very strong resistance for the Nifty which is in the proximity of 38.2 percent Fibonacci retracement of the previous fall. Talking about Bank Nifty recently we have seen that Bank Nifty was trading in a very tight range of 26,000 on the north and 24,200 on the south.
We advise traders to wait for the breakout on the either side which will decide the trend. Talking about stock specific action lately we have understood that the profit taking has been observed in the oil and gas sector. Looking at the oil and gas sector the rally was initially started in 2017 by marking a positive alpha to the underlined asset.