TECHNICAL CALL: Indian Oil Corporation - BUY

The long-term outlook for the stock of Indian Oil Corporation (IOCL: ₹134.3) is bullish. The stock has been in a strong uptrend since October 2020. This upmove has potential to target ₹160-₹165 in the next couple of months. A corrective fall to ₹140 thereafter cannot be ruled out. However, the trend will continue to remain up. A fresh leg of rally after the above-mentioned correction will increase the chances of breaking above ₹165 going forward. Such a break can take the stock up to ₹200-₹210 over the long-term, say over the next couple of years. Investors with a long-term perspective can buy this stock at current levels. Accumulate longs at ₹125 if a dip is seen. Keep a stop-loss at ₹98. Trail the stop-loss up to ₹155 as soon as the stock moves up to ₹180. Revise the stop-loss further up to ₹187 when the price touches ₹198 on the upside. Book profits at ₹205. Strong supports are at ₹113, ₹108 and ₹104. The outlook will turn bearish to see ₹80-₹70 on the downside only if IOCL declines below ₹104. But that looks unlikely.