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Investors with a short-term perspective can consider buying the stock of Hindustan Oil Exploration Company at current levels.
After a short-term downtrend from the August peak of ₹164, the stock found support in the band between ₹113 and ₹116 in early October. Subsequently, the stock began to move sideways in a wide range between ₹113 and ₹140. Testing the lower boundary for more than two weeks, the stock began to trend upwards recently.
On Wednesday, the stock surged 5.8 per cent accompanied by above average volume, breaching a key immediate resistance at ₹122. Moreover, the stock has decisively surpassed its 21- and 50-day moving averages and hovers above them. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is charting upwards in the neutral region. Further, the daily price rate of change indicator features in the positive territory implying buying interest.
Taking a contrarian view, the short-term outlook is bullish for the stock. It can continue to trend upwards and hit the price targets of ₹131 and ₹134 in the ensuing trading sessions. Traders can buy the stock with a stop-loss at ₹123.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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