CHENNAI PETRO

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Can I buy Chennai Petro at the cur­rent price?

- Paras Trivedi

CMP: ₹272.90

BSE Code: 500110

BUY ABOVE RS 305 ON A CLOS­ING BA­SIS

Chennai Petro is cur­rently trad­ing at Rs 272.90. Its 52-week high/low stand at Rs 464.40/Rs 220.65 made on Jan­uary 15, 2018 and Oc­to­ber 9, 2018, re­spec­tively. Af­ter hit­ting 52-week low, the stock formed a small body can­dle car­ry­ing a long lower shadow in­di­cat­ing buy­ing emerg­ing at lower lev­els and this co­in­cides with the ma­jor sup­port as de­fined by the hor­i­zon­tal trend­line. Con­sid­er­ing the weekly time frame, the stock has reached near about the down­ward slop­ping trend­line re­sis­tance zone. The stock is con­sis­tently trad­ing below the im­por­tant EMAs on the weekly time frame, i.e. 52-week EMA. The 14-pe­riod RSI on the daily time frame at present is quot­ing around 53 and it has been ob­served that since the last week of Au­gust 2018, the 14-pe­riod RSI has not been able to cross the level of 60. Con­sid­er­ing the above fac­tors, we would sug­gest you to wait and watch at the cur­rent lev­els and a de­ci­sive break­out above the level of Rs 305 would be a clear op­por­tu­nity to buy this stock. Hence, till the stock is not able to close above Rs 305, avoid short term buy­ing.

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