 "Will petrol, diesel price hike set OMC stocks on fire? What charts suggest")
Petrol and diesel prices on Tuesday were hiked by 80 paise a litre each while domestic cooking gas prices were increased by Rs 50 per cylinder, ending a over four and half month election-related hiatus in rate revision, sources said.
Petrol in Delhi will now cost Rs 96.21 per litre as against Rs 95.41 previously while diesel rates have gone up from Rs 86.67 per litre to Rs 87.47. READ ABOUT IT HERE
So, is the fuel price hike enough to set the stocks of oil marketing companies - HPCL, BPCL and IOC on fire? Here's what the charts suggest.
ALSO READ: Markets are not fully pricing in fuel-led inflation yet, say analysts
Bharat Petroleum Corporation Ltd (BPCL)
Outlook: simultaneous hurdles ahead
Since early February 2022, the stock has been unable to cross the 50-days moving average (DMA), currently set at Rs 367.70 levels. The weakness has resulted in the counter hitting a fresh 52-week low of Rs 331.10. Going ahead, BPCL needs to protect the support of Rs 350 on a closing basis. The next resistance falls at Rs 378, its 100-DMA, shows the daily chart. CLICK HERE FOR THE CHART
Hindustan Petroleum Corporation Ltd (HPCL)
Outlook: Sideways movement likely; 200-DMA a major hurdle
The bigger picture reveals a negative bias with formation resembling “Lower High, Lower Lows” as per the weekly chart. The stock is trading lower than its 200-DMA, set at Rs 291 levels. This will act as a major hurdle for any upside. The immediate support comes in at Rs 360. The present candlestick formations display a sideways trend for some more time. CLICK HERE FOR THE CHART
Indian Oil Corporation Ltd (IOC)
Outlook: Watch out for Rs 126 levels
Among the public oil marketing firms, Indian Oil Corporation (IOC) shares did not violate their 200-DMA support amid the recent market correction. The 200-DMA is placed at Rs 111 levels. To break out on the upside, the stock needs to cross the hurdle of Rs 126, which it has struggled to conquer since the beginning of 2022. CLICK HERE FOR THE CHART
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