I am holding IOC bought at Rs 150, which was its support zone, but the stock reversed sharply. What to do now? - Saumitra Bhardwaj
EXIT INDIAN OIL CORPORATION BELOW RS 117 LEVEL AND AVERGAE ABOVE RS 140 LEVEL
IOC is currently trading at Rs 132.30. Its 52-week high/low stand at Rs 221/Rs 105.65 made on October 27, 2017 and October 5, 2018, respectively, portraying a downtrend. The stock gave a descending triangle pattern breakdown on October 4 at Rs 150 level and gave a sharp fall of up to 52-week low in just two trading sessions. The stock surged up to Rs 136-137, which is near to the 61.8% retracement level of its prior downward move and is consolidating at those levels. The stock has witnessed volume built-up and sharp bounce back of the 14-period RSI from the oversold zone. We suggest a hold with a stop loss at Rs 117 level.