Can the divestment trigger in BPCL push oil-related stocks higher?

Except BPCL, the others show a weaker trend. However, the correction seems to have slowed down.

Shares of Bharat Petroleum Corporation (BPCL) have been on an uptrend since the past few sesisons after reports said that Russia's largest oil producer Rosneft was keen to bid for the state-owned oil marketing company.

BPCL has rallied 13 per cent in the past few days to hit its highest level since December 17, 2019. It hit an all-time high of Rs 550 in intra-day trade on November 21.

According to reports, Rosneft is keen to bid for acquisition of BPCL, after the Russian firm's CEO Igor Sechin met Oil Minister Dharmendra Pradhan on Wednesday. READ MORE HERE

Will the proposed divestment in BPCL have a rub-off effect on the other state-owned oil marketing companies. Here's what charts suggest.

S&P BSE OIL & GAS index: The index is trading below its 200-days moving average (DMA) indicating a weak trend. Morevover, the negative crossover of the major moving averages shows selling pressure on subsequent reversals. The major resistance of 14,760 levels needs to be conquered to change the negative sentiment. The immediate resistance is above 14,400 levels. The support remains at 13,700 levels, as per daily chart.  CLICK HERE FOR THE CHART
  
Bharat Petroleum Corporation Ltd (BPCL): Although, the counter has a negative crossover of 100-DMA with 50-DMA on the daily chart, it did not give a confirm breakdown. Now, as it has crossed 100-DMA upward, one can expect a further upside towards Rs 540 levels, which is the resistance level. The support remains at Rs 480 on closing basis. The Moving Average Convergence Divergence (MACD) is attempting to cross zero line upward, which signifies a strong positive momentum. CLICK HERE FOR THE CHART
 
Indian Oil Corporation Ltd (IOC): A negative crossover of 50 DMA with 100 DMA followed by a gap-down has dampened the upside move of this counter as per daily chart. The major resistance stays at Rs 130 and unless this is not conquered, the medium-term trend remains negative. On an immediate scale, the trend seems positive the as Relative Strength Index (RSI) has climbed above the oversold territory. The volumes are not very supportive of a strong upside. However, a rally towards Rs 120 may be expected. The support remains at Rs 110 levels. CLICK HERE FOR THE CHART
 
Hindustan Petroleum Corporation Ltd (HINDPETRO): A trend line resistance with price resistance at Rs 240 needs to be crossed on a closing basis to rally towards Rs 255, which is 50 DMA level. The overall trend indicates bullishness as the candlestick pattern of “Morning Star” suggests a positive sentiment as per daily chart. The RSI has climbed above the oversold condition with a positive crossover, which shows rising strength.  CLICK HERE FOR THE CHART