Oil Stocks Outlook
Seen moving sideways amid lack of triggers
This story was originally published at 19:51 IST on 26 December 2025
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NEW DELHI – Oil and gas shares are expected to mostly trade sideways in the near term amid a lack of a trigger, analysts said. "Nifty Oil & Gas shares are showing sideways-to-bullish momentum currently, breakout is seen over 12,300 points," a Mumbai-based technical analyst said.
Friday, the Nifty Oil & Gas index closed flat at 11958.15 points. The index snapped a two-week winning streak to close marginally lower from a week ago, slightly underperforming the benchmark Nifty 50, which closed 0.3% higher.
This week, Castrol India was the top performer in the 15-stock sectoral index, rising nearly 6%. Earlier this week, BP agreed to sell a 65% shareholding in UK-based Castrol to Stonepeak at an enterprise value of $10 billion. The transaction includes minority interests in Castrol, principally in India, wherein BP has a 49% interest.
Meanwhile, gas consumption in India this year moderated from last year's peak, according to CRISIL Intelligence. "Lower power sector offtake amid seasonal swings in liquefied natural gas prices and planned maintenance shutdowns at refining and fertiliser units curtailed demand," the firm said.
In the near term, CRISIL expects gas demand to remain range-bound, mainly due to increased use of cheaper gas from city gas distributors. "Any upside will depend on the weather trends and relative fuel economics, particularly for price-sensitive industrial segments," CRISIL Intelligence said.
"The two-zone tariff with a uniform CGD (city gas distributors) rate improves demand visibility and reduces regional cost dispersion. Besides network expansion, this is expected to support demand momentum, reinforcing CGD's position as a stable pillar of India's gas demand," it said in a report.
Oil prices have edged higher on Friday amid rising geopolitical tensions as the Trump administration conducted airstrikes against militants in Nigeria. The US also ordered its military to focus on "quarantine" of Venezuelan oil for at least the next two months, according to Reuters. The WTI crude oil prices inched higher to trade near $58.60 per barrel on Friday.
"Trading conditions remained thin due to the Christmas holiday, limiting follow-through buying. Nevertheless, crude prices are still on track for their steepest annual decline since 2020," Kotak Securities said in a report. "Crude oil to remain range-bound to mildly supportive, with geopolitical risks offset by weak macro demand and ample global supply. Sustained upside requires clearer evidence of tightening inventories or stronger consumption trends," it added.
TOP HEADLINES
* Milind Torawane resigns as MD of Gujarat Gas, joint MD of Gujarat Petronet
* bp's deal to sell 65% in Castrol triggers open offer for 26% in India arm
* NTPC Green arm begins commercial ops of 69 MW at Gujarat solar project
* bp agrees to sell 65% stake in UK-based Castrol at $10 bln enterprise value
* Avantika Singh appointed Gujarat Gas MD; Beniwal new MD of Gujarat Narmada
* GAIL, Chhattisgarh govt ink MoU to develop gas-based fertiliser project
* Adani Total appoints Preyash Jhaveri as interim CFO from Mon
* Indraprastha Gas, Hindustan Waste Treatment to jointly set up biofuel project
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 | 366.00 | 0.00 | 371.80 | 358.80 |
| Hindustan Petroleum Corp | 467.70 | (-)0.40 | 473.90 | 462.00 |
| Indian Oil Corp | 160.30 | (-)1.40 | 162.90 | 158.30 |
| Oil & Natural Gas Corp | 234.53 | 0.70 | 236.50 | 232.10 |
| Oil India | 402.75 | (-)0.60 | 413.30 | 396.80 |
| Reliance Industries | 1559.20 | (-)0.40 | 1564.90 | 1551.50 |
| NIFTY OIL & GAS | 11958.15 | (-)0.00 | 12023.10 | 11889.50 |
| Nifty 50 | 26042.30 | 0.30 | 26200.60 | 25929.40 |
| S&P BSE Sensex | 85041.45 | 0.10 | 85560.00 | 84678.60 |
End
US$1 = INR 89.85
Reported by Anand JC
Edited by Saji George Titus
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