ONGC, BPCL, HPCL: Oil and Gas stocks could surge up to 30%, charts show

Technical indicators suggest further upside in the S&P BSE Oil and Gas index towards 15,800 to 16,000 levels.

Prime Minister Narendra Modi's announcement to spend around Rs 7.5 trillion to build oil and gas infrastructure in India catapulted oil and gas shares at the bourses on Thursday. 

"We are planning to spend around Rs 7.5 lakh crore (Es 7.5 trillion) in creating oil and gas infrastructure over five years," said the Prime Minister. Today, Indian oil and gas companies are present in 27 countries with investment worth about Rs 2.7 trillion. About 65.2 million tonnes of petroleum products have been exported. This number is expected to rise even further. "Our companies have ventured overseas in acquisition of quality oil and gas assets," he said.

On the BSE, shares of Gujarat Gas zoomed 18 per cent to Rs 527, followed by Gujarat State Petronet (11 per cent to Rs 266), Indraprastha Gas (9 per cent to Rs 595), Mahanagar Gas (7 per cent at Rs 1,229) and Gail (India) and Oil and Natural Gas Corporation (ONGC) by 5 per cent at Rs 142 and Rs 107, respectively. In the intra-day trade, the S&P BSE Oil & Gas index inched up 3.3 per cent and was the top gainer among sectoral indices. READ ABOUT IT HERE

Here's how these stocks look on charts:

S&P BSE OIL & GAS: The index has managed to uphold the formation of "Higher High, Higher low" with a breakout above 15,434 levels. Moreover, the Relative Strength Index (RSI) has also moved upward from the consolidation of 60 to 50 value. All these factors strongly suggest further upside in the index towards 15,800 to 16,000 levels. The medium term outlook is positive with the closing basis support of 15,000 levels. A sustained move above 15,500 may see a rally towards 16,200 – 16,400 from a medium term view. CLICK HERE FOR THE CHART

Indraprastha Gas Limited (IGL): The stock has crossed the resistance of Rs 580 today. A decisive close above this level may see further upside towards Rs 600 mark, as per the daily chart. Moreover, a sustained move above Rs 580 may open doors for Rs 650 levels over the medium-term perspective. If the RSI indicator crosses 63 value, the stock may see a breakout. A closing basis support stays at Rs 560 on an immediate scale while overall trend has a support of Rs 540 levels. CLICK HERE FOR THE CHART

Mahanagar Gas Ltd (MGL): This stock is attempting to break above the Rs 1200-mark with a positive crossover of RSI. While the overall trend has a support of Rs 1,100 levels, a sustained upmove above Rs 1,200 may open door for Rs 1,300 to Rs 1,530 levels. Also, the Moving Average Convergence Divergence (MACD) is well positioned above the zero line with a positive crossover, confirming underlying positive strength. CLICK HERE FOR THE CHART

Oil & Natural Gas Corporation Ltd (ONGC): This state-owned gas firm has crossed the resistance of Rs 108 mark. This breakout can now push the stock towards the Rs 120-mark in the coming sessions. The stock price has broken the sideways movement which may invite aggresive buying by market participants if the stock manages to sustain above Rs 110 mark. A closing basis support stays at Rs 102 levels. CLICK HERE FOR THE CHART
 

Hindustan Petroleum Corporation Ltd (HINDPETRO):  After breaking above the resistance of Rs 245 and Rs 235 levels, the stock is headed towards the next resistance of Rs 270 levels. Upon crossing the same, the next upside is seen till Rs 300 levels. A closing basis support stays at Rs 230 mark as the Moving Average Convergence Divergence (MACD) has successfully crossed the zero line upward. CLICK HERE FOR THE CHART
 
Bharat Petroleum Corporation Ltd (BPCL): The next big move in this stock is expected to emerge only above the resistance of Rs 440 levels, as per the weekly chart. The upward bias is intact until the stock defends the support of Rs 400 and Rs 370 levels. The RSI is currently trading in a sideways manner, whereas the MACD is showing positive momentum with a sustain move above the zero line. A breakout above Rs 440 may see aa sharp rally towards the Rs 500 mark. CLICK HERE FOR THE CHART
 
Indian Oil Corporation Ltd (IOC): The overall trend is positive as long as the stock of the oil marketing firm holds the support of Rs 90 levels. The stock may see further upside only if it conquers the resistance placed at Rs 104. The earlier volume structure has indicated aggressive move in the stock near Rs 104 levels. If the stock overcomes this resistance, one can expect market participants to add long positions, as per the daily chart. CLICK HERE FOR THE CHART