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Investors with a short-term perspective can buy the stock of Indian Oil Corporation at current levels. Since September 2014, the stock has been on a sideways consolidation phase in a broad range between ₹320 and ₹385. Following a decline from the upper boundary in April 2015, the stock found support at around ₹320 in early May and bounced up. The stock has been on a near-term uptrend since then. While trending up, the stock decisively breached its 21-, 50- and 200-day moving average compressions at around ₹350 as well as a key resistance placed at the same level by gaining 3.3 per cent on Wednesday.
The daily relative strength index has entered the bullish zone from the neutral region. The moving average convergence divergence indicator has signalled a buy. The short-term outlook is bullish for IOC. It can reach the price target of ₹376 and ₹383 in the sessions ahead. Buy the stock with a stop-loss at ₹353.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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