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Investors with a short-term horizon can buy the stock of MOIL at current levels. The stock is showing initial signs of bullishness as it jumped 6 per cent accompanied by extraordinary volume on Wednesday. With this rally, the stock has surpassed key immediate resistance at ₹130 as well as 21- and 50-day moving averages decisively.
Following a medium term downtrend in the months of September and October, the stock found support at the medium term base level of ₹120 in early November. Subsequently, the stock changed direction and began to trend upwards. Since then, it has been in a short term uptrend. The stock trades well above the 21- and 50-day moving averages.
The daily relative strength index is on the brink of entering the bullish zone from the neutral region and the weekly RSI is charting higher in the neutral region. Further, the daily price rate of change indicators are featuring in the positive territory implying buying interest.
Taking a contrarian view, the short-term outlook is bullish for the stock. It has strength to extend the rally and reach the price targets of ₹140 and ₹143 in the upcoming trading sessions. Traders can buy the stock with a stop-loss at ₹131.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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