Heres a trending stock below Rs 20! Do you own it?

The stock has formed a double bottom pattern on the technical chart, which is a sign of bullishness.   

Gayatri Projects Limited is a small-cap infrastructure company engaged in roads, industrial as well as power projects.  

The stock of GAYAPROJ soared over 17 per cent on June 24. Such a strong price action has been accompanied by a huge volume, which is found to be greater than the 10-day, 30-day, and 50-day average volumes. Over 20 lakh shares have been traded in the first half of Friday’s trading session, which is over 12 times the previous day’s volume. Interestingly, the stock has formed a double bottom pattern on the technical chart, which is a sign of bullishness.   

The stock is undergoing a strong downtrend, having lost about 75 per cent value from its 52-week high level of Rs 60. However, with its price structure and above-average volumes, it is showing early signs of reversal. It is currently above its 20-DMA and has formed a strong bullish candle on the technical chart.  

As per the technical parameters, the stock possesses strong strength. The 14-period daily RSI (57.25) has jumped sharply from its oversold region. The on-balance volume has registered a breakout from its falling trendline, indicating strong volumetric strength. Meanwhile, the Elder Impulse System indicates a fresh buy.   

With such strong momentum, the stock is expected to test the level of Rs 20, followed by Rs 22 in the short to medium-term. Traders should keep an eye on this stock as it has the potential to provide strong returns.