Technical Analysis

Hindustan Petroleum Corporation Ltd (₹266.8): Sell

Yoganand D BL Research Bureau | Updated on July 26, 2019 Published on July 26, 2019

HPCL

Investors with a short-term perspective can sell the stock of Hindustan Petroleum Corporation (HPCL) at current levels. On Thursday, the stock tumbled 4.3 per cent accompanied by good volume, breaching a key support at ₹280 levels. This fall has strengthened the stock’s short-term downtrend that has been in place since registering a 52-week high at ₹333 in early June this year. While trending down, the stock had breached its 21- and 50-day moving averages recently and hovers well below them. Moreover, the medium-term uptrend that has been in place from the February 2019 low of ₹211 is under threat after the recent decline.

The stock has the potential to extend the short-term downtrend in the ensuing trading sessions. The daily relative strength index has entered the bearish zone from the neutral region and the weekly RSI charts downwards in the neutral region backing the downtrend. Besides, both the daily and the weekly price rate of change indicators feature in the negative terrain implying selling interest.

The short-term outlook is bearish. Targets are ₹256 and ₹250. Traders with a short-term view can sell with a stop-loss at ₹273.

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

Published on July 26, 2019
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