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Informist, Friday, Sept. 19, 2025

NEW DELHI – Oil and gas stocks are expected to continue the strong momentum seen in recent weeks in the near term as well, analysts said. The Nifty Oil & Gas index closed with gains for the third consecutive week and is expected to continue its strong performance hereon, according to two Mumbai-based technical analysts.   

The Nifty Oil & Gas index closed at 11,333.30 on Friday, up 0.4%. For the week, it gained 2.2%, sharply outperforming the frontline index, which closed 0.9% lower. The sectoral index is expected to find support at around 11,100 and face resistance between 11,500 and 11,750, according to Ajit Mishra of Religare Broking.

All 15 stocks part of the Nifty Oil & Gas index closed higher this week compared to the week before, with top gainer Adani Total Gas Ltd. rising nearly 8%. Indian Oil Corp. Ltd. gained just over 4% while Bharat Petroleum Corp. Ltd. and Hindustan Petroleum Corp. Ltd. each climbed 3.6%. According to another technical analyst, oil marketing companies' shares are primed for a good performance in the near term. 

The rupee has depreciated around 3% over the last three months, according to Nomura Research. Oil marketing companies have performed well despite this fall against the dollar. "In the last six months, Indian oil marketing companies have witnessed volatility in refining margins, potential risk on the US urging India to reduce its intake of Russian oil and depreciation of INR against USD," HSBC Global Investment Research said in a note earlier this week.

Given the support from the government, such as the promise to pay oil marketing companies liquefied petroleum gas underrecoveries which were incurred in 2023-24 (Apr-Mar), their stocks have gained 14-23% in the last six months, compared to the 12% growth in Nifty 50, HSBC said.

"We believe that OMCs have to fund large capex plans which gives us comfort that the government is unlikely to take away a large part of margins by tweaking duties," HSBC added. The firm sees downside risk in oil prices, providing the companies further support in their earnings.

WTI crude oil prices fell below $62.20 per barrel on Friday amid an inventory build-up and weak demand. "Persistent demand concerns outweighed optimism from the US Federal Reserve's first rate cut of the year," Kotak Securities said in a note. Markets are currently awaiting the outcome of US President Donald Trump's call with Chinese President Xi Jinping, which could provide guidance on tariff turmoil.

TOP HEADLINES

* EIA says US natural gas stocks rise 90 bcf in the week ended Sept 12
* Dividend of around $300 mln from Russian assets stuck, says Oil India's Rath
* RIL's arm Reliance Exploration merges with co's West Asian subsidiary
* Environ panel seeks revised plan from ONGC for developing 172 KG Basin wells
* India Aug natural gas output down 3% YoY; LNG imports down 6% YoY
* Oil cos achieve 19.1% ethanol blending in Nov-Aug, 19.8% in Aug
* Will increase LNG capacity at Gujarat, Odisha terminals, says Oil Secy Jain
* Aim to bring hydrogen cost below $2/kg by 2030: Renewable energy minister
* PRESS: India set to produce sustainable aviation fuel by year-end: UN body

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 88.09 

Reported by Anand JC

Edited by Avishek Dutta

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