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The short-term outlook for the stock of Castrol India is bullish. The stock rose 2 per cent on Wednesday. Although the stock was not gaining strength to rise sharply over the past week, the 200-DMA at ₹408 had been providing strong support by limiting the downside. Also, the 21-DMA is on the verge of breaking above the 200-DMA, which adds strength to the positive outlook. Both these factors suggest that fresh buying interest could emerge in the market at lower levels in case of an intermediate dip.
A rise to ₹430 and ₹432 looks likely in the coming days. A strong break above ₹432 can take the stock further higher to ₹438 thereafter. Traders with a short-term perspective can go long. Stop-loss can be placed at ₹411 for a target of ₹431. Revise the stop-loss higher to ₹422 as soon as the stock moves up to ₹427. The 200-DMA at ₹408 is the key support to watch. The outlook will turn negative only if the stock declines below this level.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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