We recommend a buy in the stock of Hindustan Oil Exploration Company from a short-term perspective. It is evident from the charts of the company that after registering a 52-week low at Rs 99 on October 5, the stock found support at its significant long-term base zone between Rs 95 and Rs 100.

However, the stock changed its direction thereafter triggered by positive divergence in the daily as well as weekly relative strength index and daily moving average convergence divergence indicator. Since then, the stock has been on a short-term uptrend. On October 28, the stock broke through its immediate key resistance at Rs 115 by jumping seven per cent with good volumes.

Moreover, reinforcing the uptrend, its rose seven per cent accompanied by extraordinary volumes on Tuesday. It is trading well above its 21- and 50-day moving averages. The daily RSI has entered into the bullish zone from the neutral region and weekly RSI has entered into the neutral region from the bearish zone.

Daily MACD is moving in line with the stock price and is on the brink of entering into the positive territory implying upward momentum. We are bullish on the stock from a short-term perspective. We expect its up move to sustain until it touches our price target of Rs 131 or Rs 135 in the days ahead. Traders with short-term perspective can buy the stock with stop-loss at Rs 123.

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