The inventory of Chennai Petroleum Company gained 4.4 per cent accompanied by above common quantity on Wednesday, decisively breaking above a key medium-term resistance at ₹120. This rally has strengthened the short-term uptrend that has been for the reason that inventory took assist within the band between ₹90 and ₹93 in early April this yr. Buyers with a a short-term view should purchase the inventory at present ranges.
The numerous medium-term assist within the band between ₹90 and ₹93 had supplied base in late January this yr. Thereafter the inventory began to maneuver sideways within the wide selection between ₹90 and ₹120 till just lately. With the within the sideways consolidation section, the inventory has been in a short-term uptrend from early April. The inventory trades nicely concerning the 21- and 50-day shifting averages. The current up-move has bolstered the bullish momentum. The day by day relative power index options within the bullish zone and the weekly RSI has decisively entered the bullish zone from the impartial area.
The short-term outlook is bullish for the inventory. It has potential to increase the up-move and attain the worth targets of ₹128 and ₹131 within the coming buying and selling periods. Merchants should purchase the inventory with a stop-loss at ₹119.5.
(Word: The suggestions are based mostly on technical evaluation. There may be threat of loss in buying and selling.)