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Investors with a medium-term perspective can buy the stock of Castrol India at current levels. The stock recorded a 52-week low at ₹104 in mid-October 2020 and began to trend upwards after that.
Since then, the stock has been in an intermediate-term uptrend. Within this uptrend, the stock was on a sideways consolidation phase in the band between ₹118 and ₹137 from December until last week. The stock took support from the lower boundary in late April and continued to trend towards the upper end of the sideways band.
On Friday, the stock jumped with an upward gap, gaining 5 per cent accompanied by extraordinary volume. With this upmove, the stock has conclusively breached the key barrier at ₹137 and has moved out of the sideways range.
Outlook is bullish and the stock has potential extend the uptrend to ₹162 over the medium term with a minor pause at around ₹155. Traders can buy with a fixed stop-loss at ₹130.
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