4. Bharat Petroleum

Aditya Birla Money is bullish on Bharat Petroleum Corporation (BPCL) and has recommended buy rating on the stock with a target of 840 in its October 7, 2010 research report.

Bharat Petroleum Corporation (BPCL) operates in petroleum industry of India. It operates in only 1 segment - refinery and marketing activities, which include downstream petroleum sector. It is also engaged in the Exploration and Production of Hydrocarbons (E&P). BPCL on a regular basis imports its LPG requirements mainly from the Middle East. Occasional there are import requirements of Gasoil, Base Oil, Gasoline and Kerosene.

According to Aditya Birla Money, Bharat Petroleum Corporation (BPCL) with its recent lows of 740 it has tested the lower band of this month long channel and 34 Daily Exponential Moving Average (DEMA) support. Normally a convergence of such important trend line and DEMA works as good support. Post June 2010 lows of 515 BPCL has been moving in well channeled uptrend were the outside and inside band has been defined by its pivotal high and pivotal lows. The correction post its recent highs of 840 as of 30th August 2010 has shaped up as corrective structure due to inherent characteristics of time consumption and overlapping pivots.

The correction has shaped up within a well channeled downtrend now a move above the inside band of the short term down trending channel will reinstate the strength of the medium term up-trending channel. RSI has formed a MDRP+, where a small correction in price has lead to a sharp correction in RSI, which augurs well for the stock. Buy BPCL above 773 with stop-o-loss of 742 for a target of 840 and above levels.

Currently, BPCL is being traded at 667.40 in the stock market. Its 52 week high has been 796.90 and 52 week low was 458.05. It is currently being traded at an average volume of 377,374.