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Investors with a short-term perspective can consider buying the stock of Petronet LNG at current levels. The stock gained 3.8 per cent accompanied with an above average volume on Monday, decisively breaching a key immediate resistance at ₹219. Moreover, the stock has conclusively surpassed its 21- as well as 50-day moving averages and trades well above them.
Since March 2018, the stock has been on a sideways consolidation phase in the band between ₹202 and ₹245. Last week, the stock took support from the lower boundary at ₹202 and has reversed higher strongly. Subsequently, the stock strengthened its bullish momentum and continued to trend upwards breaching its key resistances.
The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI continues to feature in the neutral region. Both the daily and weekly price rate of change indicators feature in the positive terrain implying buying interest.
Overall, the short-term outlook is bullish for Petronet LNG. The stock can extend the up-move and reach the price targets of ₹234.5 and ₹239 in the coming sessions. Traders can buy with a stop-loss at ₹220.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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