Oil Stocks Outlook
Crude back at pre-war level but oil shares seen rangebound
This story was originally published at 20:48 IST on 25 June 2026
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MUMBAI – Shares of major Indian oil and gas companies are expected to remain range-bound in the near term with technical indicators flashing no immediate signs of a directional breakout, analysts said. The Nifty Oil & Gas index closed slightly lower for the week even though its constituent stocks drew strength from the interim peace pact between Iran and the US and the resultant slide in crude oil prices.
"The Nifty Oil & Gas Index continues to trade within a descending channel pattern and remains below its key 50-DMA (50-day simple moving average) and 100-DMA levels, indicating a weak intermediate trend," Vatsal Bhuva, a technical and derivatives analyst with LKP Securities, said. "Additionally, the RSI (relative strength index) is hovering around 52, reflecting a lack of strong momentum in either direction," he added.
Thursday, the Nifty Oil & Gas index closed 0.9% lower at 11143.30 points. In the week, the sectoral index fell 0.2%, against a 0.2% rise in the benchmark Nifty 50. The fall in the sectoral index nearly mirrors the fall in the wider Nifty 200 index. "Immediate support (for Nifty Oil & Gas) is placed at 11,000 (points), while resistance is positioned near 11,400, coinciding with the upper band of the channel," Bhuva said.
This week, as many as seven companies that are part of the 15-stock index managed to close higher. Of these, Aegis Logistics was the top performer with a staggering 13% gain. State-run Oil and Natural Gas Corp. was the top laggard, down over 5% in the week. The market will remain closed Friday on account of Muharram.
The global oil market is snapping back to the "old normal" swiftly as the supply shock in the Strait of Hormuz eases, Julius Baer's economics head Norbert Ruucker said earlier this week. "Prices continue to incrementally drop as trade out of the Middle East (West Asia) grows," Ruucker said. "The fog of war made way to the fog of the super charged snap back dynamics. Based on ship tracking data and anecdotal news, and in the case of Iran helped by the recent sanctions easing, it almost feels as if the oil is flushing out of the (Persian) Gulf."
The price of West Texas Intermediate crude fell below $70 per barrel while Brent slipped below $73 per barrel, down for the fourth consecutive session. "Market confidence in a durable agreement has increased, encouraging more tankers to transit the Strait of Hormuz normally, while crude availability has risen across major exporting regions, including West Asia and West Africa. Additional supply support came from a temporary U.S. waiver allowing purchases of already-loaded Iranian crude cargoes," Kotak Neo said in a report.
TOP HEADLINES
* Fitch affirms IOC's long-term rating at 'BBB-', outlook 'stable'
* US agency seeks views on 24/7 trading, perpetual contracts in energy mkts
* HPCL says crude distillation unit of Barmer JV commences operations Mon
* S&P Global sees crude oil stock drawdown, restocking buys supporting prices
* See fiscal strain on energy shock, no impact on India credit rtg - S&P Global
* NSE Indices removes Vedanta Oil from 24 Nifty indices from Wed
* PRESS: US Treasury waives sanctions on Iranian oil for 60 days
* Sharp oil stocks correction offer compelling entry point - Kotak Securities
Following are the resistance and support levels for key oil stocks for next week as per calculations based on their prices on the National Stock Exchange:
| Company | Price | Week-on-week change in % |
Resistance | Support |
| Bharat Petroleum Corp. | 309.75 | 1.00 | 325.10 | 301.40 |
| Hindustan Petroleum Corp. | 409.25 | 4.40 | 424.80 | 399.80 |
| Indian Oil Corp. | 143.89 | 0.30 | 150.00 | 140.30 |
| Oil & Natural Gas Corp. | 233.10 | (-)5.30 | 244.00 | 226.60 |
| Oil India | 406.80 | (-)2.70 | 424.10 | 395.40 |
| Reliance Industries | 1,318.10 | 0.70 | 1,333.60 | 1,306.80 |
| Index | Level | |||
| Nifty Oil & Gas | 11143.30 | (-)0.20 | 11391.40 | 10992.00 |
| Nifty 50 | 24056.00 | 0.20 | 24341.50 | 23896.30 |
| S&P BSE Sensex | 77100.47 | 0.40 | 78109.00 | 76488.90 |
End
US$1 = INR 94.39
Reported by Anand JC
Edited by Rajeev Pai
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