With the bellwether indices zooming to record highs, many stocks appear to be attractive. Our pick of the day is Oil India which climbed 3 per cent accompanied by above average volumes on Monday. The stock’s rally has seen it decisively break out of its key long-term resistance band of between ₹490 and ₹500 that kept the stock in check for many months. Moreover, the stock is out of its sideways consolidation phase between ₹440 and ₹500.
The short-term trend has now turned upwards. The stock is trading well above its 50- and 200-day moving averages. The relative strength index on the daily chart has entered the bullish zone. Other indicators on the daily chart are featuring in the positive territory. The short-term outlook for Oil India is bullish.
It can extend its rise to ₹531 and then to ₹541 in the approaching trading sessions. Traders can buy the stock with a stop-loss at ₹500.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)