Technical Analysis

Bharat Petroleum Corporation (₹394.2): Buy

Yoganand D BL Research Bureau | Updated on June 08, 2020

Investors with a short-term perspective can buy the stock of Bharat Petroleum Corporation (BPCL) at current levels. The stock found support at ₹252 in late March this year after a sharp fall in February and early March. Subsequently, the stock had changed direction and has been in a medium-term uptrend since late March.

Following a corrective decline, the stock took support at around ₹292 in mid-May and continued to trend upwards. The stock has been in a short-term uptrend over the past three weeks. While trending up, the stock had decisively surpassed its 21- and 50-day moving averages and trades well above them.

On Monday, the stock surged 6.5 per cent with good volume, conclusively breaking above the crucial long-term resistance at ₹370. Further, this rally has strengthened the medium-term uptrend. There has been an increase in daily volume over the past three weeks, backing the uptrend.

While the daily RSI features in the bullish zone, the weekly RSI charts higher in the neutral region. Moreover, both the daily and the weekly price rate of change indicators hover in the positive territory indicate buying interest.

Overall, the short-term outlook is bullish for the stock. It can continue to trend upwards and hit the price targets of ₹410 and ₹418 levels. Traders can buy the stock with a stop-loss at ₹386.

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

Published on June 09, 2020

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