BPCL, HPCL, IOC can rally up to 10% from here. Check key levels to track

These stocks can gather steam provided crude prices soften and the government policies remain supportive. Here are the key levels one needs to monitor for these stocks.

On Tuesday, shares of Indian Oil Corporation and Bharat Petroleum Corporation have hit a new 52-week high, while Hindustan Petroleum Corporation is on the track to achieve the same. The fall comes on the back of easing crude oil prices (Brent), which have slipped around 4 per cent in the last one month to around $72 a barrel now.

So far this year, Indian Oil Corporation has gained the most rising 20 per cent, while Hindustan Petroleum Corporation and Bharat Petroleum Corporation soared 16 per cent and 13 per cent, respectively.

Here’s the technical outlook of these OMC’s amid fall in crude oil:-

Nifty Oil and Gas Index (NIFTYOILAN) 

Likely target: 7,600

Upside potential: 2%

Until the support of 50-day moving average (DMA) is held, placed at 7,412-mark, the index may see a rebound in the direction of 7,600-level, as per the daily chart.

The bigger rally is projected to emerge only over the 200-DMA set at 7,878. When this gets surpassed, the medium-term outlook shall see more aggressive bullishness. Until then, the index needs to honour the 50-DMA level. CLICK HERE FOR THE CHART

Bharat Petroleum Corporation Ltd (BPCL)

Likely target: Rs 415

Upside potential: 10%

Shares of Bharat Petroleum Corporation set a new 52-week high on Tuesday. The previous reading is Rs 374.90. Since this mark is procured, fresh upside towards Rs 415 cannot be ruled out. The present scenario depicts accumulation in the range of Rs 370 to Rs 355, and an upward breakout could prompt a swift rally. 

Similarly, a move over 60 value by the technical indicator, Relative Strength Index (RSI) may see more strength for the bulls, as per the daily chart. The weekly chart clearly reveals robust support at Rs 350 level. CLICK HERE FOR THE CHART

Hindustan Petroleum Corporation Ltd (HINDPETRO)

Likely target: Rs 300

Upside potential: 10%

The stock has decisively broken above the hurdle of Rs 265, as per the weekly chart. This breakout is hinting a positive rally for coming sessions, with the medium-term perspective appearing highly proactive. With the support of Rs 250, the counter could jump in the direction of Rs 300.

Momentum indicator, Moving Average Convergence Divergence (MACD) is well-placed over the zero line, implying that the rally to be supported with rising thrust. The stock could perhaps reach Rs 310 to Rs 320 levels. CLICK HERE FOR THE CHART

Indian Oil Corporation Ltd (IOC)

Likely target: Rs 100

Upside potential: 9%

Shares of Indian Oil Corporation reached a new 52-high, post crude oil slipping lower in the previous three sessions. Technically, the chart indicates a bullish trend, with immediate support falling at Rs 88 and 84 levels.

Stability over the key hurdle of Rs 91 levels for a few more sessions could spell a decisive upside in the stock.  The stock is resolutely showing bullish bias post conquering its earlier hurdle of Rs 87-mark. While the volumes have remained sluggish, the price action is not letting bears to slow-down the up move.  CLICK HERE FOR THE CHART