More Stories

Informist, Friday, May 9, 2024

MUMBAI – Oil and gas stocks are expected to trade lower next week after the Nifty Oil & Gas index snapped a four-week rising streak this week. There is a high probability that the sectoral index might test its 50-day moving average of 10600 points in the coming few trading sessions, a Mumbai-based technical analyst said. Next week, investors will also track the earnings of natural gas marketer GAIL (India) Ltd., due on Tuesday.

The Nifty Oil & Gas index closed Friday's session at 11016.70 points, down 0.8% from the previous close. The index rejected levels of 11400 points this week to edge lower, the technical analyst said. While the benchmark Nifty 50 fell only 1.4% this week, the sectoral index fell 2.2%. Oil and gas stocks saw profit booking in the past four days similar to the Nifty 50, but fell more.

GAIL will report its earnings on Tuesday, with analysts expecting a 10% on-year fall in its net profit but a 7.5% increase in revenue for the March quarter. However, the company's earnings before interest, taxes, depreciation, and amortisation is expected to report a sharper fall than its bottom line on account of weaker performance in gas marketing and petrochemicals segment, according to analysts.

Shares of city gas distributors outperformed in the last week due to a fall in crude oil prices, said Yogesh Patil, director of research at Dolat Capital. Oil marketing companies reported better-than-expected earnings for the March quarter due to better inventory and higher marketing gains, surprising analysts positively, Patil said.

He expects the June quarter to be a bumper one for the oil and gas players as Singapore gross refining margins are better now compared to a year ago, and liquefied petroleum gas companies' under-recoveries to fall in the ongoing quarter. These positive expectations may guide the companies' share prices in the coming months, he said.

Brent Crude oil prices have remained volatile in recent weeks owing to geopolitical uncertainty and have traded around $60-$65 per barrel. The Organization of the Petroleum Exporting Countries and other non-OPEC oil-producing countries have planned a second straight output hike of 411,000 barrels a day in June, potentially restoring the 2.2-million-barrels-per-day level by November. However, oil prices cooled off after the US and the UK signed a trade deal, which could potentially lead to similar agreements with other countries.

TOP HEADLINES

* IOC says ample fuel stocks, supply smooth amid India-Pakistan tensions
* ONGC says partnership with bp for Mumbai High oil field effective, operating
* Earnings Outlook: Renewables to drive Tata Power's Jan-Mar consol PAT
* Bajaj Allianz General's gross direct premium jumps 70% on month in April
* Ardour to convert part of allotted warrants into Adani Green Energy shares
* NLC India arm to form JV to take up green energy projects in Assam
* Coal India signs pact with AM Green to supply renewable energy
* Earnings Review: Coal India Jan-Mar consol PAT up 12% YoY, beats Street view
* Reliance Power allots equity worth INR 3.5 bln for warrants conversion
* Analyst Concall: HPCL to broadbase capex once large capex cycle ends soon
* Centre OKs fresh coal linkages to thermal power plants under SHAKTI policy
* Oil India to pick up 18% stake in JV to set up ammonia-urea complex in Assam
* HEG ups stake in GrafTech International to 10% from 8.2% for INR 345.9 mln
* NLC India arm in pact for upcoming 810 MW solar power project in Rajasthan
* Earnings Review: HPCL Jan-Mar net profit up 18% YoY, beats street
* Analyst Concall: Consumer mkt, railway exports key focus areas for CG Power
* Mahanagar Gas Jan-Mar PAT falls 4.8% on year to INR 2.52 billion
* KEI Industries Jan-Mar net profit rises over 34% YoY to INR 2.27 billion
* Uttar Pradesh OKs pact to buy 1500 MW power from Adani Power for 25 years
* Earnings Review: CG Power consol PAT growth highest in 5 quarters
* Equity Futures: More pain seen for Coal India ahead of likely weak results
* Equity Futures: Bulls bet on oil refiners as crude oil prices tumble
* Earnings Outlook: Refining, marketing margins may pull down HPCL Jan-Mar PAT
* IEX Apr electricity traded volume rises 26% on year at 10.58 bln units
* Coal India executes MoU for 500 MW solar power project in Uttar Pradesh
* PRESS: Adani group in talks with US officials for dismissal of bribery case
* Gautam Adani's kin Pranav denies report of violating insider-trading laws
* Rajkumar Dubey to replace Sukhmal Kumar Jain as chairman of Indraprastha Gas
* Analyst Concall: IOC says Russia share in FY26 crude imports to rise to 25%
* Earnings Outlook: CG Power sales, margin seen strong YoY, realisations up

Following are the resistance and support levels for the stocks for next week as per calculations by Informist based on their prices on the National Stock Exchange:

End

US$1 = INR 85.38

Reported by Anand JC

Edited by Deepshikha Bhardwaj

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2024. All rights reserved.