Oil Stocks Outlook
Seen to consolidate near term amid OMC losses in Q1
This story was originally published at 23:08 IST on 24 July 2026
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MUMBAI – Oil and gas sector stocks are expected to consolidate next week as market awaits a decisive breakout to determine near-term direction, according to technical analysts. Two major oil marketing companies reported losses for the June quarter as higher crude oil prices weighed on profitability.
On Friday, the Nifty Oil & Gas ended nearly 0.5% lower at 11077 points. Only four stocks in the 15-stock index closed higher – Bharat Petroleum Corp., Petronet LNG, Mahanagar Gas, and Reliance Industries closed 0.1-2.0% higher. On the other hand, Chennai Petroleum Corp., Oil India, and Adani Total Gas closed 1-4% lower to be the worst hit stocks in the index.
The Nifty Oil & Gas Index continues to consolidate within a broad 10950– to 11350-point range, according to Ashish Sherigar, senior technical and derivatives analyst, NVS Brokerage. "Despite multiple attempts, the index has failed to sustain above the upper band, indicating a lack of strong buying momentum at higher levels," Sherigar added. He said a decisive move above 11350 points is likely to confirm a bullish breakout, which could pave the way for an advance towards 11700 points and 12000 points.
As major events in the week, two major oil marketing companies Bharat Petroleum Corp. and Hinduatan Petroleum Corp. detailed their June quarter earnings. As expected, both the state-owned downstream companies reported a net loss for the reporting quarter weighed down by high crude oil prices. Hindustan Petroleum Corp. reported a net loss of INR 115.26 billion for the June quarter. Bharat Petroleum Corp. posted a net loss of INR 39.62 billion.
Nuvama Institutional Equities expects Hindustan Petroleum Corp.'s 2026-27 (Apr-Mar) earnings to deteriorate on higher crude prices amid the West Asia conflict. "HPCL's earnings weakened amid the West Asia conflict and rising LPG losses," the brokerage said. Slower ramp-up of major projects and elevated capital expenditure are likely to weigh on return ratios, rendering risk-reward unfavourable, Nuvama added. The brokerage had the same view for Bharat Petroleum Corp. as well. "BPCL's FY27 earnings shall deteriorate amid a challenging scenario due to West Asia war, rising LPG losses," Nuvama said.
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* Earnings Review: Low marketing margins drag HPCL Q1 to highest loss in years
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* Earnings Outlook: Under-recoveries to drag HPCL deep into losses in Q1
* Oil cos liable to pay svc tax for marketing CNG from gas distributors - SC
* INTERVIEW: India must use targeted support to guard econ - IMF Papageorgiou
* Earnings Outlook: BPCL to post INR 113 bln loss in Q1 vs profit year ago
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* Analyst Concall: KG-D6 seeing natural decline, but below anticipation - RIL
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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 | 310.15 | (-)1.70 | 315.50 | 302.90 |
| Hindustan Petroleum Corp | 381.10 | (-)4.80 | 390.10 | 367.50 |
| Indian Oil Corp | 138.47 | (-)2.30 | 140.20 | 135.90 |
| Oil & Natural Gas Corp | 248.76 | 0.60 | 255.50 | 244.90 |
| Oil India | 449.75 | 3.30 | 470.60 | 438.50 |
| Reliance Industries | 1278.00 | (-)3.70 | 1304.00 | 1236.80 |
| Index | Levels | |||
| NIFTY OIL & GAS | 11077.00 | (-)2.00 | 11174.60 | 10937.90 |
| Nifty 50 | 23767.45 | (-)2.30 | 23949.80 | 23515.20 |
| S&P BSE Sensex | 76059.77 | (-)2.70 | 76651.60 | 75178.50 |
End
US$1 = INR 96.56
Reported by Adhithya Aji
Edited by Deepshikha Bhardwaj
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