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Below the Stock Radar on Chennai Petroleum by Kkunal V. Parar, Vice-President of Technical Research and Algo, Choice Broking

On the daily chart, the stock has formed a Bullish Engulfing candlestick pattern, indicating a bullish reversal and signaling a potential upside move in the counter.

Additionally, the stock has taken support near its horizontal trendline, suggesting a strong bounce-back from lower levels.

The price is also trading above its 200-day moving average, confirming that the long-term trend remains positive and supports the possibility of further upside.

Momentum indicators further strengthen the setup. The daily RSI is placed at 39.80 and has formed a positive divergence, highlighting improving momentum and indicating a potential bullish expansion in the stock.

Based on the above technical structure, the stock is expected to move higher towards the target range of 861–948, with a strict stop-loss at 740.

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