ICICIdirect recommends buying Gujarat Apollo Industries in the range of Rs 132-127 for target of Rs 170 with stop loss of Rs 115 on a closing basis.

Commenting on the rationale, the stock broker said,"The break-out past dual resistances provided by a major long term trend line joining the yearly highs of 2010 (Rs 245) and 2012 (Rs 162) and simultaneous breach of the upper band of the 17 month broad trading range (Rs 123-176) since January 2013 till date has triggered a long term trend reversal for the stock.

In the process, the stock has also given a strong closing above its long term 200 weeks EMA (115), which has acted as a stiff resistance on multiple occasions and indicates strength in the price breakout.

The price breakout is well supported by momentum oscillators as the weekly MACD remains in rising mode above its trigger line and indicates continuance of upward momentum in the near term.

We expect the stock to head towards the target of Rs 170 in the medium-term being the measuring implication of the range breakout 47 points (123-76) added to the breakout point of Rs 123, which projects an upside towards Rs 170, which also coincides with the 123.6% extension of the previous up move from 76 to 120 as projected from the recent higher bottom of 97."

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