We recommend a buy in the stock of Petronet LNG from a short-term perspective. It is apparent from the charts of the stock that after hitting its 52-week low at Rs 122, the stock changed its trend, triggered by positive divergence in daily indicators.

Since then, the stock has been on an intermediate-term uptrend. In early September this year, the stock decisively broke out of a key resistance as well as its 200-day moving average. The stock is hovering well above its 50- and 200-day moving averages. On Friday, the stock advanced 3 per cent accompanied by above average volumes and breached its immediate resistance at Rs 169. Both the daily as well as weekly relative strength index are featuring in the bullish zone.

The daily and weekly price rate of change indicators are hovering in the positive terrain implying buying interest. The daily moving average convergence divergence indicator has signalled a buy. Considering that the stock’s intermediate-term uptrend line is intact and the recent reinforcement of bullish momentum, we are positive on the stock from a short-term perspective. We expect its rally to continue and reach our price target of Rs 178.5 or Rs 182 in the approaching trading sessions. Traders with a short-term perspective can consider buying the stock while maintaining stop-loss at Rs 168 levels.

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