After drifting aimlessly for quite a while, the stock of oil major Hindustan Petroleum Corporation Ltd revved up recently, offering a good buying opportunity for traders. The stock bounced off its long-term support at Rs 165 in August, which helped it change course from a downtrend. This was accompanied by positive divergence in the daily indicators. Since August, HPCL has been on a steady uptrend, making higher peaks and troughs.
The stock’s uptrend line has consistently held over the past two months. Even the recent slide has halted at the support of Rs 210. On Wednesday, the stock gained 4.8 per cent accompanied with high volumes. This upmove reinforces the bullish momentum in the stock. The relative strength index on the daily chart has started moving towards the bullish zone.
The short-term outlook for the stock is bullish. HPCL has the potential to continue moving northwards and reach the price target of Rs 232 and Rs 237 in the coming trading sessions. Buy the stock while maintaining a stop-loss at Rs 217.5.
( Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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