Trading recommendations by Nilesh Jain of Anand Rathi: Buy HPCL, UPL

The stock of HPCL has witnessed a built-up of long positions with the addition of 10 per cent open interest

BUY HINDPETRO | TARGET: Rs 255 | STOP LOSS: Rs 222

The stock is on the verge of a breakout an 'inverse head and shoulder' pattern on the daily chart. The neckline is placed at 236 levels; above that we can expect a fresh leg on the upside towards 255 levels. The momentum indicators and oscillators have also provided a buy crossover on the daily chart. The stock also witnessed a built-up of long positions with the addition of 10 per cent open interest.

BUY UPL | TARGET: Rs 550 | STOP LOSS: Rs 492

The stock is forming a 'saucer' formation on the daily chart as well as making a 'higher top and higher bottom' formation for the past few weeks. It also surpassed the upper band of the Bollinger band which hints at a fresh breakout on the chart. It is trading well above its short-term and long-term moving averages. The momentum indicator RSI and MACD are very well in the buy mode on the daily as well as weekly time frame hints of a further momentum on the higher side.

BUY PEL | TARGET: Rs 1,720 | STOP LOSS: Rs 1,520

The stock has provided a breakout from a 'rounding bottom' formation on the daily chart. The recent volumes are higher than average and hint at a big move in the counter. The conservative target of the above pattern is coming around 1,720 levels. It is also trading well above its short-term and long-term moving averages. The momentum indicator RSI has reversed from the oversold territory and MACD has provided a fresh buy crossover on the daily chart hints of a further momentum on the higher side.

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Disclaimer: Nilesh Jain is Technical and Derivatives Research - Equity Research at Anand Rathi Shares and Stock Brokers. He may have positions in one or all of the above mentioned stocks. Views are personal.