The outlook for the stock of Godfrey Phillips is bullish. The uptrend in this stock has gained momentum ever since it breached the psychological level of ₹1,000 last week. It also gives an initial sign of the long-term downtrend in the stock getting reversed.

The stock surged over 5 per cent on Monday and has closed on a strong note. A key near-term support is at ₹1,075 which is likely to limit the downside. As long as the stock trades above it, there is a strong likelihood of the stock extending the current upmove to ₹1,220. The level of ₹1,220 is a crucial long-term trend resistance.

Traders can go long at current levels and also accumulate on dips at ₹1,105 and ₹1,090. Stop-loss can be placed at ₹1,070 for the target of ₹1,220. Revise the stop-loss higher to ₹1,155 as soon as the stock moves up to ₹1,170. The bullish outlook will get negated only if the stock declines decisively below ₹1,075. Such a break will trigger a pull-back move on the back of profit-booking. The stock can then fall to ₹1,000.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)