Positional Pick - Hindustan Petroleum Corporation Ltd for Target Rs 500 by Bajaj Broking Ltd
Derivative Outlook
* Hindustan Petroleum (HINPETRO) witnessed a strong bullish breakout in Monday’s session, confirming the continuation of its upward momentum.
* In the November series option chain, the highest Call OI stands at the 480 strike, which acted as an immediate resistance. This level has now been decisively surpassed by the futures, indicating strength.
* Consistent Put writing is visible across strikes up to 520, reinforcing bullish sentiment and suggesting market participants are positioning for further upside.
* During the October series, fresh shorts were added to futures OI; however, these positions were not rolled over into the November series — a sign of short covering and renewed bullish positioning.
* Since the recent low of Rs 432 on 24th October, the stock has seen strong buying interest accompanied by higher delivery volumes, validating the shift toward positive momentum.
* In line with our overall bullish stance on the broader markets, the Oil & Gas sector is expected to continue its outperformance in the coming days.
* HINPETRO remains one of the preferred picks within the sector, with a target of Rs 500 in the near term.
Buy Hindustan Petroleum Corporation Limited CMP Rs 480 Buying range : Rs 476-480 Target : Rs 500 Stoploss : Rs 466 Upside : 4.16% Duration : Monthly Expiry
Technical Outlook
* The stock exhibits a strong bullish structure, consistently forming higher highs and higher lows, which reaffirms a positive undertone.
* Having breached multiple resistance zones, these levels are now expected to act as strong support areas, showcasing a classic change in polarity.
* It has given a long term rounding breakout along with flag and pole breakout indicating fresh buying momentum.
* Momentum indicators also align with the uptrend — the 14-period RSI has given a bullish crossover above its 9-period average, indicating renewed buying interest.
* With sustained momentum, the stock is poised to rally towards the Rs 500 mark, aligning with the 161.8% Fibonacci extension derived from the recent swing between Rs 375 and Rs 464.
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