inteliigentrader

Hindpetro Volume Price Analysis

NSE:HINDPETRO   HINDUSTAN PETROL
HindPetro has announced its results, and my first impressions are that they are exceptional. During times of lockdown, petroleum sales would be one of the most affected ones. Take the example of commercial flights. Their demand have reduced by more than 90%. They are one of the top consumers of petroleum and when their demand falls, automatically, demand for fuel will also fall. But even after this, HPCL recorded almost 3 fold profits, which is a great deal in itself. This is a bullish sign for the company.
The above, was in terms of fundamentals. But what does the price and volume say. According to my analysis and observation, the 2 volume expansions(4th August 2020 14:45 and 6th August 2020, 09:15) have happened when the price tried to move higher and the strength of the candles were pretty strong and also wide in range, suggesting that demand is overcoming the previous supply at lower levels. But the last volume expansion which happened on 6th August 2020, 14:45, was when price tried to move higher, but at the end the supply exceeded the demand causing the price to close below the opening. The follow up candle was an inside candle with a wick. This is sending mixed signals and so the price needs to decisively break either levels: 219.45 on the upside or 208.75 on the downside, in order for it to determine the trend. Breaking either level will result in the break of a pivot level, which when broken, causes the trend to change. All in all, the price is currently in a range, and a breakout would confirm the trend. If price breaks on the upside, then the supply zone would be a resistance, and if the buyers are strong enough, they would soak up all the supply and let the price move higher. Or else, there is no immediate support for Hindpetro and so the price can move towards 200 and lower.
This is an educational post and all the opinions provided above and on charts are simply speculation. Nothing is 100% in stock market.
Consult your financial advisor before taking trades
I do not recommend taking trades according to my analysis as you may incur loss, for which I am not responsible.
Trade carefully
Grateful🙏
Comment: Volume expansion happened with price falling, which is how I had analyzed the last 30 minute candle of yesterday's session. I had said that this was suspicious as such a narrow range bearish pin bar formed on back of abnormal volume. This is exactly what I meant. Morning candle closed almost 3% lower from the opening, which confirmed that the suspicious candle, indeed, had lots of supply present. Buyers were not strong in today's session and so the supply was more than the demand, causing the price to fall. 212.5 is an important pivot for HPCL. If that level is broken, then the bearish trend will continue in the coming sessions. If 219-221 levels are broken, strongly on back of volumes and bullish price action, then the trend would change in HPCL. Price is looking in a range.

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