Indian Oil Corporation Limited : Rebound in the short term
Entry price | Target | Stop-loss | Potential |
---|
₹251.95 |
₹0 |
₹246 |
-100% |
---|
Indian Oil Corporation Limited explores for refines crude oil, in addition to manufacturing petroleum & petroleum products. The Company's products include lubricating oils, liquid petroleum gas, aviation turbine fuels, greases, wax, bitumen and asphalt. Indian Oil Corporation has retail outlets throughout India.
The greatest majority shareholding in the Company is held by Indian Government.
According to Surperformance rating, the company is an opportunity for a trading strategy. Indeed, it is a good compromise between its value and its visibility. From a fundamental viewpoint, the security is cheap with a PER of 7.84x for 2013 and 7.5x for 2014. Besides, EV/Sales is low with a ratio at 0.24x for this year.
Technically, in daily data, even if 20 days moving average is still in a downtrend, a positive reaction in the INR 250.4 area should stop this trend and allow a technical rebound towards INR 260.65. Moreover, technical indicators show a significant oversold condition which strengthens this bullish scenario.
Considering technical and fundamental elements, it seems to be an appropriate timing to take immediately a long position in Indian Oil Corporation Limited in order to benefit from the INR 250.4 support area. A first target will be INR 270. A stop loss order will be placed under the mid-term support currently tested.
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