Buy or Sell? How to trade Reliance, ONGC, OMC shares amid Russian oil ban

Crude Oil prices have soared 7% in the last two weeks following fresh US sanctions on Russian oil imports. Back home, shares of oil exploration and marketing companies look favourably placed on charts

Crude Oil prices have shot up by 7 per cent in the last two weeks to around $61 per barrel, after the US, the UK and the European Union imposed fresh additional sanctions on import of Russian oil.  In his bid to negotiate peace deal with Ukraine, the Donald Trump-led US administration has imposed sanctions on Russian oil giants, Rosneft and Lukoil. The sanctions freezes all US assets of these companies and prohibit American firms and financial institutions from doing business with them.  According to reports, India and China were among the largest importers of Russian oil. Following the latest sanctions, Reliance Industries said it was assessing the implications of restrictions announced and will accordingly align its operations to meet the compliance requirements.  Similarly, state-run refiners have also scaled back Russian oil imports and as per reports are awaiting government directions on the same.

Meanwhile, here's a technical check on crude-oil related stocks in India.

Reliance Industries

Current Price: ₹1,484  Likely Target: ₹1,600  Upside Potential: 7.8%  Support: ₹1,458; ₹1,433; ₹1,410  Resistance: ₹1,520; ₹1,545; ₹1,570  Reliance Industries stock is likely to trade with a favourable bias as long as the stock holds above ₹1,410, with near support visible at ₹1,458 and ₹1,433 levels. On the upside, the stock is likely to revisit its summit around ₹1,600 levels. Intermediate resistance for the stock can be anticipated around ₹1,520, ₹1,545 and ₹1,570 levels.   

 

 

  ONGC

Current Price: ₹252  Likely Target: ₹300  Upside Potential: 19%  Support: ₹248; ₹243  Resistance: ₹260; ₹284  ONGC stock has witnessed a sharp ascent post the breakout in late September. The short-term trend is likely to remain positive above ₹243, with near support seen at ₹248 levels. On the upside, the stock can rally to ₹300-mark, with interim resistance likely around ₹260 and ₹284 levels.   

 

 

Oil India

Current Price: ₹416  Likely Target: ₹490  Upside Potential: 17.8%  Support: ₹408; ₹397; ₹378  Resistance: ₹430; ₹445  Oil India share is seen consolidating around its 100-Day Moving Average, which stands at ₹419 for the last one month. The bias at the counter is likely to be cautiously optimistic as long as the stock holds above ₹378, with near support likely at ₹408 and ₹397 levels. On the upside, the stock can potentially surge to ₹490, with likely resistance around ₹430 and ₹445 levels.   

 

 

Indian Oil (IOC)

Current Price: ₹155  Likely Target: ₹180  Upside Potential: 16.1%  Support: ₹153; ₹150; ₹147  Resistance: ₹159; ₹167; ₹175  Indian Oil share is seen making higher-highs and higher-lows on the daily chart since the breakout in mid-September. The near-term bias at the counter is likely to remain positive above ₹147, with interim support visible at ₹153 and ₹150 levels. On the upside, the stock can potentially zoom towards ₹180, with intermediate resistance anticipated around ₹159, ₹167 and ₹175 levels.   

 

 

Hindustan Petroleum (HPCL)

Current Price: ₹453  Likely Target: ₹517  Upside Potential: 14%  Support: ₹438; ₹423  Resistance: ₹469; 493  HPCL stock is seen trading at life-time highs. The stock can potentially soar to ₹517 levels, suggests the yearly Fibonacci chart. Interim resistance for HPCL can be anticipated around ₹469 and ₹493 levels. Near-term bias is likely to remain favourable as long as the stock holds above ₹423, with near support seen at ₹438.   

 

 

Bharat Petroleum (BPCL)

Current Price: ₹342  Likely Target: ₹390  Upside Potential: 14%  Support: ₹339; ₹323  Resistance: ₹350; ₹370  BPCL stock can potentially surge to ₹390 levels, with interim resistance likely around ₹350 and ₹370 levels. On the downside, the stock has near support at ₹339; followed by the major support at ₹323.