Shares of Indian Oil Corporation fell as much as 3.93 per cent to Rs 378.05, their lowest since 31 March.
Stock price cut below Rs 385.2, the 23.6 per cent retracement level of the uptrend from 12 February 2016 low to 16 May 2017 high, suggesting that a five-wave uptrend is complete and wave A of a corrective cycle has started.
Trend Intensity indicator (TI) also rose to 16, indicating the beginning of a downtrend.
Stock’s 20-day exponential moving average (EMA) cut below its 50-day EMA on Thursday, 22nd June 2017 a bearish sign for the stock.
Stock may retrace entire wave 5 to 366.2 rupees, its first support, before resuming the downtrend towards 344.5 rupees, the 38.2 per cent retracement level of the entire uptrend.
Stock has gained 89.46 per cent in the past one year as of Thursday’s close, compared with NSE Index’s 17.39 per cent gain.