Technical Analysis

Tech query: Petronet LNG consolidates in a wide range

| Updated on April 03, 2021

I want to invest in the stock of Petronet LNG and RBL Bank for the long term. Please let me know the technicals of these two stocks.

Rajesh Reddy

Petronet LNG (₹227.7): After bottoming out in March 2020, the stock of Petronet LNG was on a medium-term uptrend until it encountered a key resistance in the band between ₹270 and ₹280 in early July 2020. Thereafter, the stock started to consolidate sideways in a wide range between ₹210 and ₹270. The key long-term resistance in the band between ₹270 and ₹280 has been limiting the upside since last July.


In January this year, the stock encountered a key resistance at ₹270 and started the decline. It has been in a medium-term downtrend since then. However, it found support at ₹220 last week and pauses now. An immediate significant support is pegged in the band between ₹200 and ₹210 for the stock that could arrest the on-going downtrend within the sideways consolidation phase. An upward reversal from the long-term support zone between ₹200 and ₹210 is possible. You could consider investing in the stock at around this support band, with a long-term stop-loss at ₹185. An emphatic break-out of this key immediate resistance level of ₹240 can take the stock higher to the upper boundary of the sideways movement, that is ₹270-280 band, over the intermediate term. A conclusive breakthrough of ₹280 can push the stock northwards to ₹300 and then to ₹320 over the long run. Conversely, if the stock tumbles below ₹200, a decline to ₹175 is possible, the next key base level to note.


RBL Bank (₹216.1): The stock of RBL Bank was on an intermediate-term uptrend from the April 2020 low of ₹101 until it encountered a key resistance at ₹275 in early January this year. Subsequently, the stock changed direction has been in a medium term downtrend since then . However, the stock trades above a key base level of ₹205 after testing this level recently. A decisive fall below this level can pull it down to ₹180 and then to ₹160. Hence, you can wait and consider buying the stock at around ₹180 with a long-term stop-loss at ₹150 levels. On the upside, if the stock decisively moves beyond ₹235 it can witness an up-move to ₹250 and then to ₹260 levels. A clear breakthrough of ₹260 will pave the way for an up-move to ₹275. To reinforce the bullish momentum the stock needs to emphatically break through the long-term barrier at ₹275. Such a break can take it northwards to ₹300 levels initially and then to ₹325 over the long run. In that scenario, you can buy the stock above ₹235 levels with a stop-loss at ₹175 levels.

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on April 03, 2021
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.