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Investors with a short-term perspective can buy the stock of Castrol India at current levels.
On Monday, the stock gained 4.3 per cent accompanied by good volume breaking above a key medium-term resistance level of ₹155. Following a medium-term downtrend, the stock found support at ₹135 in early September 2018. Subsequently, the stock changed direction and has been on a short-term uptrend since late September. But, a key resistance at ₹155 was capping the upside in late November and December. The recent 4 per cent rally has conclusively taken the stock above the key resistance level of ₹155.
The stock trades well above its 21- and 50-day moving averages. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI features in the neutral region. Both the daily and weekly price rate of change indicators hover in the positive territory implying buying interest.
The short-term outlook for the stock of Castrol India is bullish. The stock can continue to trend upwards and reach the price targets of ₹165 and ₹168 in the ensuing trading sessions. Traders can buy the stock with a stop-loss at ₹154.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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