BPCL has rallied smartly from a low of Rs206 in July 2008 to a high of Rs386 in October 2008, which acted as a critical resistance levels for the stock.
Volumes in the pullback rally were also on the lower side, making a breakout from the above levels unlikely. Since then, the stock witnessed a sharp decline with stock falling below its key short-term moving average.
However, stock is taking support at a small rising support trendline placed around Rs305 levels. A break below the same will see the stock confirming the declining trend for immediate price target of Rs270-275 levels. A sustained break below the levels of Rs270 is likely to take the prices towards the Rs225 levels.
Investors holding the stock should look to exit their holdings on a break below Rs300 levels. Traders should look to sell on a break below the Rs305 levels with a stop loss placed at theRs316 levels for targets of Rs275-270 levels.