The stock of oil major HPCL is on the brink of breaking through the key resistance at ₹240. Investors with a short-term perspective can consider buying the stock at current levels. After taking support at ₹158 in late August 2013, the stock has been on an intermediate-term uptrend.

It encountered a key resistance at ₹240 in late December 2013. In recent times, the stock is testing this resistance with a positive bias. On January 29, the stock advanced 5.5 per cent, decisively breaching its moving average compression (21-, 50- and 200-day moving averages) at ₹230. The recent move adds momentum to the stock’s uptrend. The weekly RSI too is on the verge of entering the bullish zone. Both daily and weekly price rate of change indicators are featuring in the positive terrain implying buying interest.

The short-term outlook is bullish for HPCL. A decisive breakthrough beyond ₹240 can take the stock to the price target of ₹252 and then to ₹257 in the coming trading sessions.

Buy the stock with a stop-loss at ₹237.

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