Investors with a short-term perspective can buy Hindustan Petroleum Corporation at current levels. The stock has advanced 6 per cent accompanied by above average volume on Tuesday, breaching a key immediate resistance at ₹213 and its 21-DMA decisively.

The stock had recorded a 52-week low at ₹155 and bounced up strongly on Friday, and formed a piercing line candlestick pattern, which is a bullish reversal signal. Over the past three trading sessions, the stock has been in a near-term rally. This up-move was triggered by positive divergence in the daily price rate of change indicator and the daily moving average convergence divergence indicator. Further, the daily relative strength index has entered the neutral region from the bearish zone and the weekly RSI is on the brink of entering the neutral region from the bearish zone.

There has been an increase in daily volume over the past seven trading sessions. Taking a contrarian stance, the short-term outlook is bullish for the stock. It can continue to trend upwards and reach the price targets of ₹225.5 and ₹230 in the ensuing trading sessions.

Traders can buy with a deep stop-loss at ₹210.

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

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