Technical Analysis

Castrol India (₹129.2): Buy

Yoganand D BL Research Bureau | Updated on September 13, 2019 Published on September 13, 2019

The stock of Castrol India gained 3.6 per cent accompanied by above average volume on Thursday, breaking above a key resistance at ₹125. Investors with a short-term perspective can buy the stock at current levels as it witnesses buying interest.

Following a medium-term downtrend, the stock found support at ₹113 in early August and began to move sideways. It re-tested the support at ₹113 in late August and bounced up strongly triggered by positive divergence in the daily indicators. Since then, the stock has been in a short-term uptrend.

While trending up, the stock breached its 21- and 50-day moving averages recently and hovers well above them. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI has entered the neutral region from the bearish zone. Both the daily and the weekly price rate of change indicator feature in the positive territory implying buying interest.

The short-term trend is bullish for the stock. It can extend the up-move and reach the price targets at ₹134.5 and ₹137. Traders can buy the stock with a stop-loss at ₹126.5.

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

Published on September 13, 2019
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