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Traders looking for short-term opportunities can consider buying the stock of Bharat Petroleum Corporation Ltd (BPCL), as the price action hints at a fresh rally.
The stock, which began to appreciate in late August last year, rallied from ₹310 and marked its lifetime high of ₹549 in November, returning a substantial 75 per cent for the period. Since then, the price has been softening and declined to ₹448.5 in January. From then on, the stock has been consolidating in a sideways trend between ₹450 and ₹476.
On Tuesday, the stock broke out of the range, opening the door for resumption of the bull trend. The breakout has resulted in price closing above the 21-DMA. The daily relative strength index is showing a fresh uptick and has moved above the mid-point level of 50. Also, the MACD indicator on the daily chart hints at increasing bullish momentum.
Hence, trades can buy the stock with stop-loss at ₹465 and look for a target of ₹500 in the near-term.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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