Sell India Oil Corporation, target Rs 150: Aditya Agarwal

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Aditya AgarwalWay2Wealth Brokers

Looking at the weekly chart, Indian Oil Corporation has corrected sharply from its all-time high of around Rs 221 on back of rising crude oil price and corrected till Rs 150. Subsequently, it saw a gradual pullback in last few weeks and is currently oscillating near Rs 170 levels.

Looking at the weekly chart, IOC has formed a bullish divergence pattern and now the weekly RSI (14) signals a negative reversal pattern which indicates that the recent rally was merely a pullback and stock is likely to resume its downtrend soon.

Hence, we advocate traders to go short in a range of Rs 169 to 171 with a price target of Rs 150. Stop loss should be placed at Rs 181.50 on a daily closing basis.

Disclaimer: The author Head of Technical Research, Way2Wealth Brokers Pvt. Ltd. The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.