Mol Nyrt. (MOL), Hungary’s largest refiner, rebounded from the lowest close in more than seven months as a technical indicator signaled the company’s slump was overdone and European stocks rallied.

The shares increased 2.6 percent to 15,180 forint at 9:46 a.m. in Budapest, paring their monthly decline to 15 percent. Mol’s 3.9 percent plunge yesterday pushed its 14-day relative strength index to 25, below the 30 level that indicates to some analysts a stock is oversold. The benchmark BUX stock index gained 1.9 percent to 16,280.90 today, paring its monthly slump to 11 percent.

European stocks rose, trimming the biggest monthly drop since August, as polls showed Ireland will back measures to contain the debt crisis and data showed German retail sales jumped a second consecutive month in April.

To contact the reporter on this story: Andras Gergely in Budapest at agergely@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net