Up 2x in 1 year: ICICI Direct suggests buying this Maharatna PSU stock for 3 months; check target and stop loss

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.