Oil India witnesses an ascending triangle breakout! Know more about its targets

The stock of Oil India has surged over 4% despite weakness in the market.

Shares of Oil India have given a breakout from its ascending triangle-like pattern with above-average volume. Lately, the stock has been registering above-average volume, which is found to be greater than the 10-day and 30-day average. Moreover, the stock is inching towards its 52-week high level of Rs 266.70. Also, the stock is on a bullish track and has gained over 20% in just six trading sessions.

As per the technical parameters, the stock has seen strong strength recently the 12-period daily RSI (68.94) indicates a strong strength in the stock. The ADX points northwards and has broken out from its falling trendline. Meanwhile, the MACD histogram continues to rise and indicates a sharp upmove. Interestingly, the On Balance Volume (OBV) is at its peak and demonstrates strong strength from volume’s point of view. The other momentum oscillators also indicate strong bullishness of the stock.

On a YTD basis, the stock has generated over 32% returns to its shareholders and has outperformed the broader market and most of its peers. The rising crude oil prices have benefited the company and revenues and net profits are expected to rise. As per the breakout of ascending triangle, the stock is expected to trade higher in times to come. The first target is placed at Rs 300, followed by Rs 330 in the short to medium term. The huge volumes recorded lately indicate strong buying interest and fresh long positions being taken, which can propel the stock higher. Meanwhile, one can consider placing a stop loss at Rs 240.

Oil India Limited is engaged in oil and gas exploration and production projects both in India and abroad. It is a midcap company with a market capitalization of about Rs 28600 crore. The company has a promising future and the same is being reflected in its stock movement.