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Oil stocks surged on Wednesday, thanks to further fall in crude oil prices, below $91, a 27-month low. Among the oil marketing companies, Indian Oil Corporation jumped 7 per cent, accompanied by good volumes. Since taking support at ₹195 in January, the stock which underwent a corrective decline recently amid an uptrend, now appears to have resumed its uptrend.
The stock has also broken out of a flag pattern and breached a key resistance at ₹373. Interestingly, with this rally, the stock’s daily indicators are showing signs of bullish momentum and are on the brink of entering the positive terrain.
The indicators on the weekly chart continue to feature in the bullish zone. Our short-term outlook is bullish for IOC.
It can rally further and reach our price target of ₹398 and ₹406 in the upcoming trading sessions. Buy the stock with a stop-loss at ₹374.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.),
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