The stock of Hindustan Petroleum Corporation appreciated 12 per cent last week. The rally led to the breakout of resistance at ₹418, which also happens to be the neckline of an inverted head and shoulder pattern. This indicates that the stock possesses potential for more gains from the current level. As per the chart set up, the price can rise to ₹540, which we expect to happen before the end of this year. While moving up, the stock might see some consolidation after reaching ₹500 and then resume the rally. Buy at ₹439 and ₹418. Place initial stop-loss at ₹390. When the price rises to ₹480, revise the stop-loss to ₹430. Tighten the stop-loss further to ₹480 when the stock touches ₹510. Liquidate the longs at ₹540.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)