The Hindu Business Line
Indian Oil Corporation (₹153.7): Sell
The stock of Indian Oil Corporation fell by 2.8 per cent with low volume on Wednesday breaching the 21-day moving average. Investors with a shortterm horizon can sell the stock at current levels.
After a short-term uptrend from the February low of ₹121, the stock encountered a key resistance at ₹165 in late March this year. Subsequently, the stock changed direction triggered by negative divergence in the daily relative strength index and price rate of change indicator and began to decline. Moreover, the key resistance at ₹165 also limited the upside. There has been a decline in daily volumes over the past one week.
The short-term uptrend is weakening. The daily price rate of change indicator hovers in the negative terrain, implying selling interest.
The near-term view is bearish for the stock. Targets are ₹147.5 and ₹144.5. Traders can sell the stock with stop-loss at ₹157.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)