Technical Analysis

Hindustan Petroleum Corporation (₹218): Buy

Yoganand D, BL Research Bureau | Updated on May 05, 2020

HPCL is yet to recognise ONGC as its promoter. Representative image   -  The Hindu

The stock of Hindustan Petroleum Corporation has gained 5 per cent with good volume in today's session. It started the session with gap-up open at ₹212 and continued to trend upwards. After recording an intra-day high at ₹220 the stock began to move sideways with an upward bias. Since it took support at around ₹165 in late March, the stock has been in a short-term uptrend. While trending up the stock had decisively breached its 50-day moving average in the past week and it hovers well above the 21- as well as the 50-day moving averages.

The daily relative strength index is charting higher in the neutral region. Further, the daily price rate of change indicator has re-entered the positive terrain implying buying interest. The short-term outlook is bullish for the stock. An emphatic break above the current resistance level of ₹220 will strengthen the uptrend and take the stock northwards to ₹226 and ₹232 in the forthcoming trading sessions. Traders can buy the stock with a deep stop-loss at ₹210.

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

Published on May 05, 2020

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