Oil Stocks Outlook
Seen subdued next week in absence of major cues
This story was originally published at 23:05 IST on 9 August 2024
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MUMBAI - Shares of oil companies are expected to see subdued movement next week in the absence of major triggers. However, the price movement of crude oil will be widely tracked, especially as it has been rising for four straight sessions now since global concerns over a recession in the US started to take shape. The geopolitical tension in West Asia is also under investors' radar for cues.
Meanwhile, analysts do not expect a sharp rise in crude oil prices, at least not above the $90-per-barrel mark. Some analysts see crude oil prices moving between $80-$85 per bbl in the coming months. At 1912 IST, the Brent Crude October futures traded on the Intercontinental Exchange was 0.1% higher at $79.23 per bbl.
A few also continue to expect the government to pass down any spike in crude oil prices to consumers, which will be a relief for the oil marketing companies in the country. State-owned refining companies took a hit during Apr-Jun due to a sharp increase in crude oil prices during the quarter, primarily due to geopolitical conflicts in West Asia.
Amid the overall optimism in the stock market today, the Nifty Oil & Gas closed over 1% higher, with eight out of its 15 constituents in the green. Oil India was the top gainer and closed 5% higher at 643.95 rupees on the National Stock Exchange.
Despite reporting weak June quarter earnings figures, Oil India's stock hit a record high of 655.90 rupees on the back of improved oil production and strong operational performance. Some broking firms retained their 'buy' rating on the stock, including Motilal Oswal Financial Services and Emkay Global Financial Services.
TOP HEADLINES
* Oil India Apr-Jun crude sales volume dn 0.7% QoQ, gas volume up 4.7%
* Earnings Review: Oil India PAT hit by fall in crude revenue, EBIT
* Despite recent fall, oil prices to rise in Jul-Dec, says EIA
* ONGC standalone FY25 capex may be about 320 bln rupee, says co mgmt
* Earnings Review:ONGC net profit down 15% YoY on fall in EBIT, volumes
Following are the resistance and support levels for the sector's key stocks for next week, as per calculations based on their prices on the National Stock Exchange:
| Company | Price | Week-on-week change in % | Resistance | Support |
| Bharat Petroleum Corp | 333.40 | (-)4.00 | 340.20 | 326.40 |
| Hindustan Petroleum Corp | 376.65 | (-)3.20 | 390.60 | 367.10 |
| Indian Oil Corp | 169.09 | (-)4.60 | 174.50 | 166.10 |
| Oil & Natural Gas Corp | 332.55 | 0.70 | 339.90 | 324.60 |
| Oil India | 643.95 | 6.30 | 681.70 | 592.30 |
| Reliance Industries | 2948.60 | (-)1.70 | 2978.90 | 2896.90 |
| Nifty 50 | 24367.50 | (-)1.40 | 24474.70 | 24257.60 |
| S&P BSE Sensex | 79705.91 | (-)1.60 | 80181.60 | 79311.30 |
End
Reported by Anjana Therese Antony
Edited by Vidhi Verma
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