The Hindu Business Line

Indian Oil Corporatio­n (₹153.7): Sell

- YOGANAND D

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.)

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