Stocks

Hindustan Petroleum Corporation (₹179.6): Buy

Yoganand D BL Research Bureau | Updated on October 29, 2020 Published on October 29, 2020

Investors with a short-term horizon can buy the stock of Hindustan Petroleum Corporation at current levels. The stock jumped 4.5 per cent accompanied by above average volume on Thursday, regaining bullish momentum. After encountering a key resistance at ₹240 in the month of June and July this year, the stock began to decline. Since then, the stock has been in a medium term downtrend. However, the stock found support in the band between ₹162 and ₹165 in mid-October and changed direction triggered by positive divergence on the daily relative strength index. The stock has been in a budding near-term uptrend. While trending up, it has breached the 21-day moving average in the past session. The daily RSI is charting higher in the neutral region and the weekly RSI has entered the neutral region from the bearish zone. Recently, the daily price rate of change indicator has entered the positive terrain implying buying interest. Taking a contrarian view, the short-term outlook is bullish for the stock. It can continue to trend upwards and reach the price targets of ₹187 and ₹191 in the forthcoming trading sessions. Traders can buy the stock with a stop-loss at ₹175.5. (Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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Published on October 29, 2020
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