The stock of Hindustan Oil Exploration Company has been on a short-term uptrend since taking support at around ₹100 in early March this year.

On Wednesday, the stock jumped 6.3 per cent with above average volume, breaking above a key resistance as well as 50 per cent fibonacci retracement level of prior downtrend at ₹127. This rally gives investors with a short-term perspective an opportunity to buy the stock at current levels. The stock has also breached its 21-day moving average and trades well above it and 50-day moving averages. Moreover, the stock appears to have resumed its intermediate-term uptrend that has been in place since last June.

Both the daily and weekly relative strength indices have entered the bullish zone from the neutral region. Likewise, the daily as well as weekly price rate of change indicators feature in the positive territory implying buying interest.

The short-term outlook for the stock is bullish. It can extend its short-term uptrend and hit the price targets of ₹135 and ₹137.5 in the ensuing trading sessions. Buy the stock with a stop-loss at ₹127.

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

comment COMMENT NOW