Hindustan Oil –Buy- India Infoline
Hindustan Oil Exploration stock had faced a stiff resistance at its downward-sloping trend line since early February 2010. However, on Thursday, the stock managed to cross over its downward sloping curve. The move was supported by sharp surge in volume (6x of its 10-day average volume).
The stock has managed to hold on the support zone between Rs225-227. This bullish breakout signals the end of the intermediate downtrend. The position of the short-term oscillators also indicates that the stock has formed an intermediate bottom. A sustained rally past the levels of Rs252 could see the stock attempting its February 2010 peak.
We recommend buying the stock at current levels and on any declines to Rs245 levels for short term target of Rs267 and Rs272. Traders should maintain a stop loss of Rs235 on all long positions.
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