Today's Pick

Hind Oil Exploration Co (Rs 107.7) - BUY

Yoganand D. BL Research Bureau | Updated on December 09, 2012

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We recommend a buy in the stock of Hindustan Oil Exploration Company from a short-term perspective. It is apparent from the charts of the stock that following a medium-term downtrend from its July 2012 peak of Rs 140, it took support at around Rs 92 in November. Triggered by positive divergence in daily relative strength index and daily moving average convergence divergence indicator, the stock subsequently reversed direction.

On Friday, the stock jumped almost 7 per cent accompanied by extraordinary volume decisively breaking through a key resistance at Rs 100. This up move has also breached its 50-day moving average. The daily RSI is featuring in the bullish zone and weekly RSI is moving higher in the neutral region.

The daily MACD is moving higher in line with the stock price and is about to enter the positive territory from the negative territory. We We expect a price target of Rs 112 or Rs 114.5 in the ensuing trading sessions. Traders can consider buying the stock with stop-loss at Rs 105.5 levels.

Published on December 09, 2012

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