The short-term outlook is bullish for the stock of Chennai Petroleum Corporation Limited (CPCL). The stock surged 5 per cent on Thursday. This has strengthened the upmove that has been in place since late December last year. Immediate support is at ₹255-250. Dips to this support zone are likely to get fresh buyers. So, a fall below ₹250 is less likely. Immediate resistance is at ₹290. A break above it can take the CPCL stock price up to ₹320 over the next three-four weeks.
Traders can go long at current levels. Accumulate on dips at ₹260. Keep the stop-loss initially at ₹245. Revise the stop-loss up to ₹281 as soon as the stock moves up to ₹287. Move the stop-loss further up to ₹295 when the stock price touches ₹302. Exit the long positions at ₹310.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)