Todays Pick

BPCL (₹493)

Yoganand D | Updated on January 09, 2018

Investors with a short-term perspective can consider selling the stock of Bharat Petroleum Corporation Ltd (BPCL) at current levels. The stock has been in a medium-term uptrend since taking support at ₹400 in late June 2017. But, this uptrend encountered a key resistance in the band between ₹540 and ₹550 in early September this year. This resistance band again capped the stock's rally in late October and has become a significant medium-term hurdle. The stock subsequently changed direction triggered by negative divergence in the daily relative strength index. For the past two weeks, the stock has been trending down. In last two days, the stock has tumbled almost 4 per cent breaching a key support at₹ 505. Moreover, the stock trades well below its 21 and 50-day moving averages. The daily RSI has entered the bearish zone from the neutral region. Both the daily and weekly price rate of change indicators feature in the negative territory implying selling interest. The short-term outlook is bearish for the stock. It can extend its downtrend and reach the price targets of ₹475 and ₹465 in the ensuing trading sessions. Sell the stock with a stop-loss at ₹502.

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

Published on November 14, 2017

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