Castrol ready for a rally

K Seshadri

Castrol seems all set to move up. On Wednesday it opened at Rs 591, moved up to a high of Rs 594.50. The intra-day low was at Rs 587.25. The scrip closed at Rs 591.75.

The scrip had moved down from a peak of Rs 622. The stochastic indicator is about to cross over its trigger line and give a buy signal. However, judging from the fact that it has made a bottom improvement on Wednesday over that of Tuesday, the scrip looks ripe enough to get in. Volume of trading in the scrip has come down sharply to Rs 15 crore on Wednesday from Rs 34 crore on Tuesday. But that is a good indication. No one has found it easy to sell short. That is the take off for a move up. It now offers a reasonable opportunity. Go long, and keep a stop loss at Rs 582.

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