Oil Stocks Outlook
Direction uncertain after index ends 3-wk losing streak
This story was originally published at 19:07 IST on 12 December 2025
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NEW DELHI – The Nifty Oil & Gas index managed to end a three-week losing streak this week. However, technical trends show a lack of directional certainty in the coming week. Analysts expect the index to head towards a sustained upward momentum only if it manages to close above 12,000 points in the next three to four trading sessions.
The Nifty Oil & Gas index closed at 11927 points on Friday, up 1.1% from the previous close. For the week, the index closed around 0.2% higher, better than the benchmark Nifty 50, which closed 0.5% lower.
"On the daily chart, the index remains in a falling channel consolidation but managed to close above its 50-day EMA (exponential moving average) and near the 20-day EMA as well as its recent swing high," said Vatsal Bhuva, a technical and derivatives analyst at LKP Securities. "The setup reflects lack of strong directional conviction. Immediate support is at 11825 and resistance at 12000, with RSI (relative strength index) turning bullish," Bhuva said.
The sector is seemingly in the good books of foreign investors, even as they pulled out money from most sectors. While foreign portfolio investors turned net negative on Indian equities in November, the oil, gas, and consumable fuels sector saw inflows of INR 71.69 billion -- an outlier. In October, the sector saw an inflow of INR 91.29 billion. In Jan-Nov, equity inflows into the sector stood at INR 60.75 billion, even as foreign investors were net negative on Indian equities, IDBI Capital said in a report this week, citing data from the National Securities Depository Ltd.
Meanwhile, oil prices remain volatile as traders weigh concerns of oversupply and track developments related to peace negotiations in the Russia-Ukraine war. Ukraine's President Volodymyr Zelenskyy and leaders of France, Germany, and Britain are working on a revised peace plan, which they will present to the US in a bid to ensure Kyiv gets a fair deal. "Adding to oversupply worries, the EIA expects U.S. crude production to reach a record 13.61 mbpd this year," Kotak Securities said in a note on Friday. NYMEX crude oil is expected to face a hurdle near $59 per barrel and may move towards $56 a barrel on expectations of a supply glut.
"The IEA's previous report projected a larger inventory surplus for 2026, and any progress on the Russia–Ukraine peace deal could further boost global supply through easing sanctions on Russian oil. However, Chinese stimulus measures and stronger U.S. heating demand may offer support at lower price levels," Rahul Kalantri, VP Commodities at Mehta Equities Ltd. said.
TOP HEADLINES
* IOC to pay interim dividend of INR 5 per share; sets Thu as record date
* OPEC retains 2026 oil demand growth view of 1.4 mln bpd
* IEA ups forecast for global oil demand growth in 2025, 2026
* GAIL gets INR-1.43-bln penalty order for not paying GST on corp guarantee
* High global output, low demand to push crude oil prices lower, says US EIA
* Petronet LNG to raise INR 120 bln from SBI-led consortium to fund Dahej unit
* SC sets aside HC order appointing arbitrator for HPCL-BCL Secure dispute
* Torrent Power, Japanese co in pact for 10-year LNG supply, starting 2027
* Putin says Russia ready to continue uninterrupted shipments of fuel to India
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 | 365.05 | 1.30 | 375.60 | 347.30 |
| Hindustan Petroleum Corp | 459.90 | 2.10 | 469.60 | 443.60 |
| Indian Oil Corp | 163.67 | 0.00 | 166.40 | 160.70 |
| Oil & Natural Gas Corp | 238.02 | (-)1.30 | 240.50 | 235.80 |
| Oil India | 404.35 | (-)1.80 | 407.50 | 399.70 |
| Reliance Industries | 1556.50 | 1.00 | 1567.80 | 1540.40 |
| NIFTY OIL & GAS | 11927.00 | 0.20 | 12012.60 | 11776.40 |
| Nifty 50 | 26046.95 | (-)0.50 | 26133.50 | 25895.20 |
| S&P BSE Sensex | 85267.66 | (-)0.50 | 85545.80 | 84817.70 |
End
US$1 = INR 90.42
Reported by Anand JC
Edited by deepshikha Bhardwaj
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