Let me play a quiz - name a sector leader that gave no returns from 2004 to 2009, only risen since then and now even in these choppy markets is almost nearing its all time high.
I would guess hardly any correct answers will be returned. But that is true for the oil sector giant BPCL. The only sector to have returned nothing in the booming 2000s, this one has been a silent mover. Hardly has anyone noticed that this one is close to its all time high. Even people are surprised that this is been recommended. Let us look at why I like this.
Ever since the low made in late 2011 and early 2012 the stock is making higher tops and higher bottoms - the religious indicator of an uptrend. The stock will surely encounter stiff resistance at around 800 levels which is the all time high. But the stock needs to be monitored for investment purpose. On the weekly charts going forward it shall give a pullback to 18 day EMA at which point it will be considered ripe for investment. On the daily charts the stock is slightly overbought. Hence we need to be little patient for taking advantage of the uptrend identified in the stock.
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