Shares of integrated energy company GAIL (India) hit 2-1/2-year high, and technicals suggest further upside.

The stock rose as much as 4.6 per cent to Rs 412, its highest since October 2014.

The stock has cleared a resistance near the psychological level of Rs 400.

Trend intensity indicator has gone up to 16 from Wednesday's level of 14, indicating the start of a new uptrend.

MACD is also positive and above its signal line, which is favourable for the stock.

Compared to broader market, valuations for energy stocks look cheaper; BSE Oil & Gas Index was trading at 12-month forward PE of 13, and broader NSE Index trading at 20.09.

GAIL was trading at a 12-month forward PE of 14.17.

Break above stock's record high of Rs 413.92 hit on October 31, 2014 will further confirm the upside.