Multibagger stocks Chennai Petroleum Corporation Limited (CPCL) and Mangalore Refinery and Petrochemicals Ltd have climbed up to 177 per cent in 2023 so far after showing strong breakouts. Monthly technical charts suggest the momentum may stay positive on the two counters.
CPCL technical outlook
For CPCL, where Indian Oil Corporation Ltd owned 51.89 per cent stake as on June 30, the relative strength index (RSI) momentum indicator is favourably positioned while the moving average convergence divergence (MACD) is reinforcing the current market strength, analysts said while noting that MRPL is trading above the crucial 50-EMA, indicating strong bias.
Pravesh Gour, Senior Technical Analyst, Swastika Investmart, said CPCL has broken out of a W-formation on the monthly chart and is surging towards its record high of Rs 600 level. The stock settled at Rs 585 on Tuesday, up 10.63 per cent.
"Simultaneously, the daily chart reflects a breakout of an Inverse Head and Shoulder pattern, accompanied by robust trading volume. With a positive trajectory, the stock's overall structure seems promising for short investments, especially considering its position above crucial moving averages," he said.
In terms of potential price levels, Gour said the immediate resistance is anticipated at Rs 610. Should this level be surpassed, a substantial upward movement towards Rs 660-plus level appears probable in the near future, Gaur said adding that any corrective moves might find support around the Rs 530 mark.
Shiju Koothupalakkal Technical Research Analyst at Prabhudas Lilladher said the monthly chart already has shown a major breakout above Rs 455 zone and the trend is fairly positive. On the daily chart, Koothupalakkal said the stock is taking support near the Rs 476.
"It has witnessed a decent pullback to improve the bias maintaining above the significant 50EMA zone and is currently with a strong bullish candle formation with huge volume participation has given a breakout above Rs 550 level to strengthen the bias. On can anticipate for further rise for next near term target of 625 levels," he said.
Koothupalakkal said one can keep positions and maintain a stop loss at Rs 455 level for targets of Rs 625 and Rs 710 levels.
Jigar S Patel, Senior Manager for Technical Research Analyst at Anand Rathi Shares and Stock Brokers said the counter has given a handsome return of 246 per cent from the December 2022 low of Rs 174.40 and is currently placed at the Rs 590 level.
"As we advance, support is seen near Rs 560, followed by Rs 540. Resistance is seen near Rs 610, followed by Rs 630. The ideal zone for going long will be Rs 530–540. As of now, book some profit in the zone of Rs 595–620," Patel said.
MRPL technical outlook
In the case of MRPL, which is promoted by ONGC and HPCL, Gour of Swastika Investmart said the stock has recently broken out of a Cup and Handle formation pattern after a prolonged consolidation period, accompanied by notable trading volume.
"Its current position above key moving averages is indicative of an appealing market structure. Regarding potential price movement, the immediate resistance area lies at Rs 120. Should this be surpassed, a potential surge toward the Rs 140-plus levels is foreseeable in the near term. Conversely, if the stock dips below the Rs 105 level, the next critical support zone is at Rs 100," he said.
Koothupalakkal of Prabhudas Lilladher said MPRL has been in a strong uptrend since the last 3-4 months and recently indicated a breakout above Rs 103 level. He sees extended gains in the coming days.
"The stock has maintained above the significant 50-EMA zone, indicating strong bias and with the RSI well placed, it has further upside potential visible to carry on with the same momentum for next higher targets of Rs 128 and Rs 141 levels in the coming days. The near term support can be maintained near Rs 103 level, below which the bias can turn weak to some extent," he said.
MRPL closed at Rs 112.70 on Tuesday, up 8.94 per cent.
Patel of Anand Rathi said MRPL counter has see handsome return of 137 per cent from the March 2023 low of Rs 49.75 and is currently placed at Rs 110 level. He sees support for the stock near Rs 100 level, followed by Rs 90 level.
"Resistance is seen near Rs 117, followed by Rs 127 level. The ideal zone for going long will be Rs 90–92. As of now, book some profit in the zone of 108–114 level," he said.
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