RIL, ONGC, OIL: Will gas price hike fire up a bull phase in related stocks?

Shares of Oil & Natural Gas Corporation (ONGC), Reliance Industries, and Oil India were in spotlight on Monday amid a steep 40 per cent hike in natural gas price by the order of the Petroleum Planning and Analysis Cell. 

The 40 per cent hike in gas prices under the administered price mechanism (APM) advised by the Kirit Parekh committee last week from $ 6.26/ Metric Million British Thermal Unit (mmbtu) to $8.57/mmbtu, and 26.26 per cent jump in high pressure, high temperature (HPHT) gas price to $12.5/mmbtu will have a far reaching implication. Select upstream companies, such as ONGC, and OIL India, will reap benefits of the move, analysts said. READ HERE

On the bourses, ONGC, and Oil India had zoomed 41 per cent, and 56 per cent, respectively, till March, and June this year. Amid the rally, ONGC fell short to hit a new historic peak, while Oil India managed to register a new all-time high in 2022. However, since then, the shares have been on a retracement mode. Mukesh Ambani-owened Reliance Industries, meanwhile, recorded a new historic high in April this year.

Amid the hike in gas price, here’s the technical outlook of these related stocks:

Oil & Natural Gas Corporation Ltd (ONGC)  

Outlook: Daily time frame hints at Rs 146

While there is a bullish formation of "Golden Cross" on the higher timeframe of weekly chart, the daily time frame categorically shows hurdle at Rs 146, which is the 200-day moving average (DMA). The stock did cross Rs 131.60 mark, its 50-DMA, and intends to take off the immediate hurdle of 100-DMA set at Rs 136 mark. If this move succeeds, the trend could fetch a rally to Rs 146 levels. CLICK HERE FOR THE CHART

Oil India Limited (OIL)

Outlook: Trend is weak

The stock failed to hold ground after dipping beneath 200-DMA in June this year. Now, as Moving Average Convergence Divergence (MACD) has reversed, more weakness might engulf the stock. There is a "Death Cross" formation on the dauly chart which reflects a vigilant sentiment. The immediate barrier comes at Rs 190-mark. On th downside, a breach of Rs 160 could see a fall towards Rs 143. CLICK HERE FOR THE CHART

Reliance Industries Ltd (RELIANCE)

Outlook: 100-WMA acts as a support

This is the third time Reliance Industries' stock has tested the significance of Rs 2,350 – Rs 2,200 range, which was the breakout mark of September 2021, as per the weekly chart. The 100-weekly moving average (WMA), at Rs 2,301 mark, seeks to provide some respite.  On the higher side, Rs 2,650 – Rs 2,600 range acts as a major barrier. CLICK HERE FOR THE CHART