Oil Stocks Outlook
Near-term view mixed as Nifty Oil & Gas snaps 7-week rise
This story was originally published at 17:51 IST on 21 November 2025
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MUMBAI – The near-term outlook for shares that are a part of the Nifty Oil & Gas index appears to be mixed, after the sectoral index snapped its seven-week gaining streak this week. While one Mumbai-based technical analyst expects the index to trend lower in the coming week, another analyst sees some bullish momentum.
On Friday, the Nifty Oil & Gas index closed 0.5% lower at 12143.95 points. For the week, the index closed lower by 0.4%, while the benchmark Nifty 50 closed 0.6% higher. Only two stocks -- Petronet LNG and Reliance Industries -- of the 15-stock index closed in the green. Indraprastha Gas was the poorest performer as it ended the week 5.3% lower, followed by Mahanagar Gas and Aegis Logistics, both closing around 3% lower.
"On the weekly chart, the index has formed a cup and handle pattern and is currently positioned near its breakout levels. On the daily chart, it is consolidating around the neckline of this pattern," said Vatsal Bhuva, technical analyst at LKP Securities. The fact that the index is staying above its 20-day simple moving average reflects the underlying strength, Bhuva said.
"A close below 11950 would negate the bullish setup, while a breakout above 12300 could act as a trend-setting move. Key support is placed at 12000 and resistance at 12300 levels," Bhuva added. A Mumbai-based technical analyst said the sectoral index could get some support at 12000 points but face resistance at 12501 points.
For the September quarter, earnings growth of Reliance Industries and oil marketing companies stood out in the sector. "Strong refining margins, decline in LPG (liquefied petroleum gas) under-recovery and improvement in RIL's consumer segments drove the YoY operational improvement, even as retail fuel margins saw some YoY softness for the OMCs (oil marketing companies)," ICICI Securities said in a note.
The earnings of city gas distributors were affected by a decline in allocation of gas under the administered pricing mechanism as it raised their overall costs and dragged their margins. Lower realisation from the sale of crude oil impacted the earnings of upstream oil companies. "We remain positive on downstream names and selective on the gas space; but upstream may remain under pressure in the near term," ICICI Securities said.
"We believe Q3 earnings of OMC (oil marketing companies) will be stronger, due to H1FY26 (Apr-Sept) LPG losses compensation by government, nil LPG, losses and strong GRM (gross refining margin)," Elara Capital said in a note. According to Bhuva, a strong earnings report for the ongoing December quarter could be the catalyst for the Nifty Oil & Gas index to break out of its current consolidation zone.
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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:
| Company | Price | Week-on-week change in % |
Resistance | Support |
| Bharat Petroleum Corp | 364.55 | (-)1.80 | 369.70 | 360.80 |
| Hindustan Petroleum Corp | 471.90 | (-)1.90 | 481.20 | 465.50 |
| Indian Oil Corp | 167.35 | (-)2.30 | 169.80 | 165.00 |
| Oil & Natural Gas Corp | 246.95 | (-)0.30 | 249.30 | 245.10 |
| Oil India | 425.05 | (-)2.70 | 436.60 | 417.80 |
| Reliance Industries | 1546.60 | 1.80 | 1565.90 | 1530.50 |
| NIFTY OIL & GAS | 12143.95 | (-)0.40 | 12271.00 | 12059.90 |
| Nifty 50 | 26068.15 | 0.60 | 26226.90 | 25972.90 |
| S&P BSE Sensex | 85231.92 | 0.80 | 85764.60 | 84921.50 |
End
Reported by Anand JC
Edited by Ashish Shirke
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