Oil Stocks Outlook
May fall more next wk but sharp sell-off unlikely
This story was originally published at 22:09 IST on 6 September 2024
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MUMBAI - Shares of oil companies are likely to witness some selling pressure next week, though a sharp fall may not occur, analysts at different broking houses said. Changes in crude oil prices will also be closely monitored, especially amid the ongoing conflict in West Asia.
However, crude oil prices are expected to remain weak in the near term. Reports said the government may cut prices of petrol and diesel due to a significant fall in global crude oil prices. At 2032 IST, the November Brent crude futures, traded on the Intercontinental Exchange, were down for the sixth consecutive day, falling 0.9% to $71.79 per barrel. This is a fall from more than $90 per barrel in April when the conflict between Israel and Iran had worsened.
Meanwhile, several members of the Organization of the Petroleum Exporting Countries and its allies agreed to extend their voluntary crude oil production cuts till the end of November, according to an official statement by the cartel. Earlier, OPEC had announced additional voluntary cuts in April and November 2023.
Back home, all oil companies, except Hindustan Petroleum Corp, saw weekly declines in their share prices, with Oil India falling the most by over 15% from a week ago. The Nifty Oil & Gas index closed 2.2% lower at 13024.55 points, with all constituents in the red. The index has fallen 5.6% in the last seven days and 20% in 52 weeks. Today, the fall in heavyweight Reliance Industries weighed the most on the oil and gas index, which closed a near 2% lower at 2,929.65 rupees on the National Stock Exchange.
TOP HEADLINES
* OPEC, allies extend voluntary production cuts until end November
* RIL board approves 1-for-1 bonus issue of shares
* PRESS: JSW Neo Energy, ONGC last two in bid to buy Ayana Renewable
* Govt awards RIL 10 GWh capacity of advanced chemistry cell mfg
* IOC ups 19 kg commercial LPG cylinder price by 39 rupees in Delhi
* Indian Oil cuts ATF price to 93,480 rupees in Delhi
* Govt cuts windfall gains tax on domestic crude oil to 1,850 rupees/tn
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 | 352.15 | (-)1.50 | 370.40 | 342.00 |
| Hindustan Petroleum Corp | 434.40 | 3.70 | 458.80 | 420.50 |
| Indian Oil Corp | 176.64 | (-)0.20 | 184.10 | 171.00 |
| Oil & Natural Gas Corp | 308.80 | (-)6.60 | 318.00 | 299.10 |
| Oil India | 626.95 | (-)15.40 | 679.90 | 599.00 |
| Reliance Industries | 2929.65 | (-)3.00 | 3019.70 | 2878.20 |
| Nifty 50 | 24852.15 | (-)1.50 | 25308.20 | 24573.30 |
| S&P BSE Sensex | 81183.93 | (-)1.40 | 82746.40 | 80200.70 |
End
Reported by Anjana Therese Antony
Edited by Aditya Sakorkar
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