Investors with a short-term perspective can buy the stock of Castrol India at current levels. The stock took support in the base zone between ₹355 and ₹365 in late December 2016 and started to trend upwards. Since then, the stock has been on a medium-term uptrend. While trending up, the stock breached its moving average compression (21-, 50- and 200-DMAs) at around ₹415 in mid-March 2017 and continued its uptrend.

On Monday, the stock conclusively breached its key resistance at ₹435 by gaining 4 per cent. This rally has reinforced the stock’s medium-term uptrend. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is on the brink of entering this zone from the neutral region. The short-term outlook is bullish for Castrol India. Traders with a short-term view can buy with stop-loss at ₹436. Targets are ₹465 and ₹474.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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