Investors with a short-term view can buy the stock Hindustan Petroleum Corporation at current levels. Significant medium-term support in the band between ₹165 and ₹170 provided base for the stock in mid-May this year. It has been in a medium-term uptrend since then.

Following a corrective decline, the stock found support at around ₹200 in the past week and resumed the uptrend. It has been in a near-term uptrend since then. On Tuesday, the stock gained 3 per cent with above average volume, breaching a key resistance at ₹227 on Tuesday.

The recent rally has decisively breached the 21- and 50-day moving averages and it trades well above them. There has been an increase in daily volume over the past one week.

The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is charting upwards in the neutral region. Moreover, both the daily and the weekly price rate of change indicators are featuring in the positive terrain implying buying interest.

The medium-term uptrend can continue and the stock has potential to trend upwards. The short-term targets are ₹244 and ₹248.

Traders with a short-term perspective can buy the stock with a stop-loss at ₹228 levels. (Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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