We recommend a buy in the stock of Gulf Oil Corporation from a short-term perspective. It is apparent from the charts of the stock that it has been in a long-term uptrend from its December 2011 trough of around Rs 52. Following a medium-term corrective downtrend, the stock took support in the band between Rs 78 and Rs 82 in December 2012. Triggered by positive divergence in daily moving average convergence divergence indicator and the stock's long-term band providing base, the stock changed its direction. Near-term trend is up for the stock.

On Monday, the stock advanced by 4 per cent accompanied by above average volume breaching its immediate key resistance at Rs 87. Its daily relative strength index has entered the bullish zone from the neutral region and weekly RSI is moving higher in the neutral region. The daily MACD is climbing higher in line with the stock price and is on the brink of entering positive territory. The daily price rate of change indicator is hovering in the positive area implying buying interest.

Our short-term outlook for the stock is bullish. We anticipate its near-term up move to continue and reach our price target of Rs 93.7 or Rs 95.5 in the forthcoming trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 88.2 levels.

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