The stock of Oil India breached a key hurdle at ₹187 and closed comfortably above this price point in the past week. Traders and investors hunting for short-term opportunities can consider buying this stock.
The scrip, which was on a downtrend since the beginning of 2018, continued to head south until March 2020. During this period, it slid from ₹260 to about ₹64; in March last year, it hit a fresh low of ₹63.50.
But later, the stock made a U-turn and started to trend upwards, although it faced difficulty in crossing the psychological mark of ₹100.
Then it largely moved sideways between ₹84 and ₹100 until December last year.
In mid-December, the stock successfully moved past ₹100 and established an uptrend. Powered by this, the stock broke out another key resistance of ₹187 last week accompanied by above average volumes and it looks set to scale further heights.
Indicators like the RSI and the MACD on the daily chart are pointing upwards and showing good positive momentum. One can go long in declines with stop-loss at ₹178 and look for targets at ₹215 and ₹230 over the medium term.