The stock of Hindustan Petroleum Corporation Ltd (₹276.4) has been on a strong rally over the past two weeks. Last week, it gained over 10 per cent, breaking above a key medium-term resistance at ₹250, accompanied by good volumes. Investors with a medium-term perspective can buy the stock at current levels.

Since encountering a key resistance at ₹480 in October 2017, the stock had been on an intermediate-term downtrend until it found support at ₹163 in October 2018. Then it reversed direction and began to go up. It has been in a medium-term uptrend since recording a 52-week low at ₹163. Key resistance at ₹250 limited the stock's rally in November and December 2018.

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But the recent rally has conclusively breached this resistance. Moreover, the stock has also surpassed its 200-day moving average and hovers well above the 50- as well as 200-day moving averages. There has been an increase in daily volume over the past two weeks, backing the up-move.

The daily relative strength index features in the bullish zone and the weekly RSI is on the brink of entering the bullish zone from the neutral region.

Besides, the daily and the weekly price rate of change indicators hover in the positive terrain, implying buying interest. Now, the ₹250 levels will act as a vital support for the stock. Medium-term outlook is bullish for HPCL. It can continue to trend upwards. The price targets are ₹300 and ₹320. Investors with a medium-term perspective can buy the stock with a stop-loss at ₹253 levels.

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