In the previous session, the Nifty Index opened at flat note and extended the losses as the day progressed. Later we have seen some recovery from day’s lows and the index closed with a net loss of 72.95 points. Technically, the index formed a bearish candle with long lower wick on the chart. A sector and stock specific selection is advisable for the next trading day.

Look at the below research report of ‘Stocks to Buy for – Thursday, May 12, 2022’ before the market opens.

Gujarat State Petronet Ltd.

NSE :GSPL   BSE :532702  Sector : Gas Distribution

GSPL Stock prices have formed a strong positive candle on the daily chart and closed with a net gain of 4%. We have plotted Parabolic SAR on the chart. The Parabolic dots are moving below the prices which indicates that stock is now in uptrend. In addition, a divergence appeared between the RSI and stock prices. Stock prices are moving towards downside and making lower lows whereas the RSI is showing a higher bottom. This pattern indicates that prices continue the uptrend after the correction.

The short-term trend for GSPL looks to be positive for now. Positions can be created above 267.50 levels, which can take prices towards 276/292 level. On the other side, the level of Parabolic SAR will act as key support for the stock.