Stocks

Hindustan Oil Exploration Company (₹100): Buy

Yoganand D BL Research Bureau | Updated on December 14, 2020

Investors with a short-term perspective can buy the stock of Hindustan Oil Exploration Company at current levels. The stock gathered bullish momentum and jumped 9.7 per cent with above average volume, breaking above a key resistance level of ₹92 on Monday. This rally has strengthened the short as well as intermediate term uptrend. Since recording a 52-week low at ₹30 in late March this year, the stock has been on an intermediate-term uptrend. After a corrective medium term downtrend, the stock took support at ₹60 in late October and continued to trend upwards.

The stock has been on a short-term uptrend since then. While trending up, the stock had surpassed its 21- and 50-day moving averages and trades well above them. Last week, the stock took support at ₹80 and bounced up solidly. There has been an increase in daily volume over the past three trading sessions.

Both the daily and the weekly price rate of change indicators are featuring in the bullish zone backing the uptrend. Further, the daily as well as the weekly price rate of change indicators are hovering in the positive territory implying buying interest.

The stock has potential to surpass the current resistance at ₹100 can reach the price targets of ₹104 and ₹106 in the coming trading sessions. Traders can buy the stock with a stop-loss at ₹97.5. (Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

Published on December 15, 2020

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