Crude trumps $90: ONGC may see 15% upside; OMCs indicate a mixed trend

The two major OMCs were exhibiting a mixed trend on the charts, with HPCL reflecting positivity, while BPCL struggling to hold ground.

Shares of crude oil related companies are likely to be in focus given the fact that oil prices were trading at seven-year highs. The global benchmark brent crude futures topped the $90-mark a barrel in intraday deals on Wednesday for the first time in more than seven years, amid the growing geopolitical tensions between Russia and Ukraine.

Brent Crude has risen shaprly by almost 30 per cent in the last 28 sessions. Oil prices are vulnerable to disruption in the economy and continue to attract robust interest in times of uncertainties. Economic turmoil too has an adverse impact on oil-related products.

Russia is the world’s third-largest producer of oil with a global market share of 12 per cent in 2020, stated a reuters report quoting the BP Statistical Review of World Energy.

Analysts, now fear that if the Russia-Ukraine standoff worsens and translates into a war, oil prices could hit $125 a barrel – up around 40 per cent from the current levels.

Given the current scenario, a quick chart check of select oil-related shares reveals

Oil & Natural Gas Corporation Ltd (ONGC) 
Likely target: Rs 180 and Rs 190
Upside potential: 9% to 15%

The stock is attempting to overcome the selling pressure range of Rs 180 to Rs 160 levels, as per the weekly chart. The bigger trend suggests a bullish outlook with a formation of a “Golden Cross”. And if the lower band of Rs 160 is protected, the shares of ONGC could see a breakout towards Rs 180 and further move in the direction of Rs 190 levels.  CLICK HERE FOR THE CHART

 
InterGlobe Aviation Ltd (INDIGO)
Outlook: Support is at 200-DMA

As long as the support of 200-day moving average (DMA) is held firmly (closing basis), the shares of InterGlobe Aviaton could revive its positive sentiment. The 200-DMA is currently placed at Rs 1,874 level. If it does not, then the downside may see aggravated selling pressure and the counter can enter a bearish territory for a medium-term scale.  It could easily see decline of Rs 100-150.  CLICK HERE FOR THE CHART

Hindustan Petroleum Corporation Ltd (HINDPETRO)
Likely target: Rs 340 and Rs 360
Upside potential: 10% to 16%

The medium-term trend for the shares of Hindustan Petroleum Corporation Ltd is bullish with the formation of a “Golden Cross”, as shown on the weekly chart. This price breakout exhibits a support of Rs 280 level, which if the counter manages to hold strongly then the reversal could see Rs 340 and Rs 360 as the next reach. CLICK HERE FOR THE CHART

 
Asian Paints Ltd (ASIANPAINT)
Outlook: Require to hold 200-DMA

On Tuesday 25, 2022 the Asian Paints shares violated the 200-DMA, but managed to retrieve back in the latter half of the session closing in green. This momentum needs to be held for a few more sessions and required sustaining above the 200-DMA support. Only if this happens, the counter may hold ground and revive the positive bias. CLICK HERE FOR THE CHART

Bharat Petroleum Corporation Ltd (BPCL)
Outlook: Support stays at Rs 360

BPCL shares have lost ground when they breached the 200-DMA at Rs 397 in late November last year. It did make attempts to overcome the same crucial average, but severely failed to do so. The bullish breakout is above 200-DMA and any downward move below Rs 360 may see added gains for the bears. CLICK HERE FOR THE CHART