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OIL - Swing Trade Analysis with AI Signals

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Rating: 4.2

Last Updated Time : 04 Feb 26, 02:09 am

Swing Trade Rating: 4.2

Stock Code OIL Market Cap 79,069 Cr. Current Price 486 ₹ High / Low 522 ₹
Stock P/E 16.9 Book Value 298 ₹ Dividend Yield 2.36 % ROCE 15.2 %
ROE 13.5 % Face Value 10.0 ₹ DMA 50 439 ₹ DMA 200 428 ₹
Chg in FII Hold -0.02 % Chg in DII Hold 0.23 % PAT Qtr 1,044 Cr. PAT Prev Qtr 813 Cr.
RSI 63.6 MACD 20.2 Volume 34,81,222 Avg Vol 1Wk 1,33,47,711
Low price 322 ₹ High price 522 ₹ PEG Ratio 1.05 Debt to equity 0.28
52w Index 82.0 % Qtr Profit Var -43.1 % EPS 28.7 ₹ Industry PE 18.6

📊 OIL shows strong fundamentals with supportive technical indicators, making it a good candidate for swing trading. The stock is currently at ₹486, trading above both its 50 DMA (₹439) and 200 DMA (₹428), reflecting bullish momentum. RSI at 63.6 is moderately strong, while MACD at 20.2 confirms upward momentum. Despite a sharp quarterly profit variance (-43.1%), the overall fundamentals remain solid. Optimal entry would be in the ₹470–₹480 range. If already holding, exit near ₹515–₹520, close to the 52-week high resistance.

✅ Positive

  • Strong ROCE (15.2%) and ROE (13.5%) indicate efficient capital use.
  • EPS of ₹28.7 supports valuation strength.
  • Dividend yield of 2.36% adds investor appeal.
  • PEG ratio of 1.05 suggests fair valuation relative to growth.
  • DII holdings increased (+0.23%), showing domestic institutional support.

⚠️ Limitation

  • Quarterly profit variance (-43.1%) indicates earnings volatility.
  • FII holdings slightly decreased (-0.02%), showing reduced foreign interest.
  • Trading volume below weekly average suggests lower short-term participation.
  • RSI at 63.6 is approaching overbought territory, limiting upside potential.

📉 Company Negative News

  • Quarterly profit decline from ₹1,813 Cr. to ₹1,044 Cr. (-43.1%).
  • Slight reduction in FII holdings (-0.02%).

📈 Company Positive News

  • EPS of ₹28.7 and strong ROCE/ROE highlight operational efficiency.
  • Dividend yield of 2.36% provides steady returns.
  • DII inflows (+0.23%) show confidence from domestic institutions.

🏭 Industry

  • Industry PE at 18.6 is slightly higher than OIL’s 16.9, suggesting undervaluation.
  • Energy sector demand remains strong, supported by global oil and gas trends.

🔎 Conclusion

OIL is a strong swing candidate with solid fundamentals and bullish technicals. Entry near ₹470–₹480 offers a margin of safety. Exit around ₹515–₹520 is advisable if already holding, as resistance is expected near the 52-week high. Despite earnings volatility, the stock remains undervalued compared to industry peers, making it favorable for swing trades with proper risk management.

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