This single-digit PE and attractive-dividend yield power stock is on the verge of a multi-month breakout!

Sustaining above the levels of Rs 101-Rs 103 would result in the breakout.  

Gujarat Industries Power Company Limited, which is engaged in electrical power generation, is buzzing on the bourses on Monday as it has jumped over 8 per cent. Interestingly, the stock, in the first hour of the trading itself, has witnessed a huge surge in the volume as it managed to cross a volume of 25 lakh shares, which is five times greater than its 50-day average volume that stands at 5.05 lakh shares.   

With this strong move, the stock has reached the levels that were last seen in mid-October 2021. As the stock has marked a fresh six-month high, it is trading above its 20, 50, and 100-DMA. Interestingly, the stock has seen a bullish crossover as the short-term moving average i.e. 20-DMA recently, crossed over 50-DMA.   

Currently, the stock is on the verge of witnessing a multi-month breakout. Sustaining above the levels of Rs 101-Rs 103 would result in the breakout.   

The stock's relative strength index (RSI) has reached its highest value in the last 14 days, which is bullish. Also, it has managed to cross above its prior swing high. The daily MACD is pointing northward while sustaining above its nine-period average thus, validating positive bias in the stock. 

The stock is clearly uptrend and the trend strength is extremely high. The average directional index (ADX), which shows the trend's strength, is as high as 35.33 on a daily chart. Generally, a level above 25 is considered a strong trend. Moreover, the +DMI is above –DMI & ADX, and its pointing northward, which echoes the bullish outlook for the stock.