The stock of Petronet LNG zoomed 4.6 per cent with above average volume breaching a key immediate resistance at ₹165 on Monday. Investors with a short-tem perspective can consider buying the stock at current levels. Since this January low of ₹102, the stock has been on an intermediate-term uptrend. Medium as well as short-term trends are also up for the stock. Taking support at ₹155, the stock resumed its medium-term uptrend in the previous week. The stock is hovering well above its 21- and 50-day moving averages reinforcing the bullish momentum.
The relative strength index has re-entered the bullish zone from the neutral region. Other indicators on the daily chart are hovering in the positive territory backing the uptrend. Our short-term outlook on Petronet LNG is bullish. The stock can extend its uptrend and reach our price target of ₹182 and then ₹185.5 in the approaching trading sessions. Buy the stock with a stop-loss at ₹171.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)