The stock of Petronet LNG surged 3 per cent with above average volume on Thursday, breaking through a key resistance at ₹185 as well as its 200-day moving average. Investors with a short-term perspective can buy the stock at current levels. After retracing 50 per cent Fibonacci retracement level of its prior uptrend, the stock found support in ₹160-165 bandthis April. Since then, the stock has been on a medium-term uptrend.
It was finding difficulty in breaching the key resistance level at ₹185 in late May and again in early June. But, the stock has decisively breached it this time, adding strength to the medium-term uptrend. The stock hovers well above its 21- and 50-day moving averages.
The short-term outlook is bullish for the stock. It can rally further and reach the price target of ₹197 and ₹201 in the upcoming sessions. Buy with a stop-loss at ₹185.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)