Stock of the week - Bharat Petroleum Corporation Limited For Target Rs.551 By GEPL Capital
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Bharat Petroleum Corporation Limited
Observation
* On the monthly time frame we can see that BPCL has been witnessing a gradual up move after testing a low of 252 in March 2020, this indicates that the long term trend of the stock remains bullish.
* On the weekly time frame, we have drawn an upward slopping trend line, which has been honored since March 2020. The prices have been witnessing bounce back each time after testing the trend line.
* Currently the prices sustaining above the 20 Week SMA as well as upward slopping trend line and moving upward which shows strong undertone of the stock for the medium to long term.
* On the indicator front the RSI plotted in the weekly chart has been forming a higher high higher low pattern along with the prices since March 2020. Currently it is placed above the 50 mark indicating that the bulls are in control of the trend.
* Going ahead the key resistance level to watch out for is 510 (February 2021 High) followed by 551 (Life Time High) .
* The support cluster of 454 - 448 (20 Week SMA & Weekly Low) will act as a red flag level, followed by 400 (April 2021 Low).
Inference & Expectations
* BPCL from the long term perspective has been a steady performer.
* On the medium term charts the prices have managed to end the session above a multi week high after sustaining above the 20 Week SMA.
* We expect the bullish momentum to take the prices higher towards the 510 mark immediately.
* If the level of 510 is breached we can expect the prices to move higher towards the 551 mark.
* Our bullish view will be negated if the prices breach below the 448 mark beyond which we can expect the prices to move lower towards the 400 levels.
* One can Buy BPCL at current levels for the target of 510 and 551 levels with a strict stop loss of 448 on closing basis.
Buy Bharat Petroleum Corporation Limited LTP 471.30 TGT 551 SL 448
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