Stocks

Bharat Petroleum Corporation (₹430.2): Buy

Yoganand D BL Research Bureau | Updated on September 10, 2020 Published on September 11, 2020

Investors with a short-term perspective can buy the stock of Bharat Petroleum Corporation Ltd (BPCL) at current levels. Since recording a 52-week low at ₹252 in late March 2020, the stock has been on a medium-term uptrend. In late July, the stock decisively breached a key resistance at ₹400 and encountered the next resistance at ₹483. But it subsequently reversed direction and was on a corrective decline until recently. The significant support at ₹400 cushioned the stock in mid-August and again this week. Witnessing buying interest, the stock surged strongly, gaining 6 per cent on Thursday, breaching its 200-day moving average and an immediate resistance at ₹420. The stock trades well above its 50- and 200-day moving averages.

The daily relative strength index (RSI) is on the brink of entering the bullish zone from the neutral region and the weekly RSI is charting higher in the neutral region. Besides, the daily as well as the weekly price rate of change indicators are featuring in the positive territory, implying buying interest. Overall, the short-term outlook is bullish for the stock. It can continue to trend upwards and reach the price targets of ₹448 and ₹456. Traders can buy the stock with a stop-loss at ₹420.

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

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Published on September 11, 2020
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