Indian Oil Corporation (Rs 406.55): Buy

We recommend a buy in Indian Oil Corporation from short-term horizon. It is evident from the charts that Indian Oil Corporation (IOC) has been consolidating sideways in a broad price range between Rs 300 and Rs 450 since this July. After taking support at around Rs 300 in late October, the stock has been on a steady medium-term uptrend within this range. While trending up, the stock breached the 21-day moving average. Subsequently on November 24, IOC reinforced the medium-term uptrend by jumping up by 7 per cent with good volume, penetrating the 50-day moving average. The daily relative strength index (RSI) has entered in to the bullish zone from the neutral region and weekly RSI is rising in the neutral region. Moreover, the moving average convergence and divergence is on the brink of entering the positive territory. Our short-term forecast is bullish for the stock. We expect the stock’s current up move to continue until it hits our price target of Rs 450, which is a key resistance level, in the upcoming trading sessions. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 385.

Source: TheHinduBusinessLine