Technical Analysis

Indian Oil Corporation (₹153.6): Sell

Yoganand D BL Research Bureau | Updated on May 23, 2018 Published on May 23, 2018

Investors with a short-term perspective can sell the stock of Indian Oil Corporation at current levels. The stock has been in an intermediate-term downtrend since registering a new high at ₹231 (adjusted) in August 2017.

In March 2018, the stock encountered a key resistance at ₹205 and resumed its downtrend. Since then, the stock has been on a medium-term downtrend. The short-term trend is also down for the stock. This downtrend got strengthened on Wednesday, as the stock plunged almost 5 per cent with above average volume, falling below a significant support at ₹160.

The stock trades well below its 21- and 50-day moving averages. Both the daily and weekly relative strength indices feature in the bearish zone, backing the downtrend. Similarly, the daily and weekly price rate of change indicators are hovering in the negative territory, implying selling interest.

The short-term outlook is bearish for Indian Oil Corporation. The stock can continue declining and hit the price targets of ₹147.5 and ₹144 in the short term.

Traders can sell the stock with a stop-loss at ₹157.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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