Petronet LNG

We recommend a buy in the stock of Petronet LNG from a short-term perspective. The stock jumped 10 per cent on July 29, conclusively breaking out of its medium-term sideways consolidation range between Rs 76 and Rs 86. With this break through the stock has resumed its long-term uptrend and also reinforced the bullish momentum. We notice that there is an increase in volume over the past three trading sessions. The stock is hovering well above its 21- and 50-day moving averages. The 14-day relative strength index is featuring in the bullish zone and the weekly RSI is entered in to this zone from the neutral region. Both the daily and weekly moving average convergence divergence oscillators are featuring in the positive territory signalling upward momentum. The stock's intermediate-term uptrend trend-line is in tact. Our short-term outlook on the stock is bullish. We anticipate the stock to move up further until it hits our price target of Rs 97 and 100 in the forthcoming trading session. Traders with short-term perspective can buy the stock while maintaining stop-loss at Rs 92.

via BL