OIL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.0
| Stock Code | OIL | Market Cap | 76,459 Cr. | Current Price | 470 ₹ | High / Low | 524 ₹ |
| Stock P/E | 18.0 | Book Value | 298 ₹ | Dividend Yield | 2.44 % | ROCE | 15.2 % |
| ROE | 13.5 % | Face Value | 10.0 ₹ | DMA 50 | 465 ₹ | DMA 200 | 441 ₹ |
| Chg in FII Hold | -0.02 % | Chg in DII Hold | 0.23 % | PAT Qtr | 808 Cr. | PAT Prev Qtr | 1,044 Cr. |
| RSI | 48.7 | MACD | 0.62 | Volume | 27,76,929 | Avg Vol 1Wk | 42,49,560 |
| Low price | 322 ₹ | High price | 524 ₹ | PEG Ratio | 1.12 | Debt to equity | 0.28 |
| 52w Index | 73.2 % | Qtr Profit Var | -33.8 % | EPS | 26.2 ₹ | Industry PE | 23.3 |
📊 Chart & Trend Analysis: OIL is trading at ₹470, slightly above its 50 DMA (₹465) and comfortably above its 200 DMA (₹441), showing medium-term strength. RSI at 48.7 indicates neutral momentum, not yet oversold. MACD at 0.62 suggests mild bullish crossover potential. Bollinger Bands show price stabilizing near mid-range, with support around ₹450 and resistance near ₹500–₹524.
📈 Momentum & Volume: Current volume (27,76,929) is lower than the 1-week average (42,49,560), indicating reduced participation. Momentum signals are muted, awaiting stronger volume for confirmation of trend continuation.
🔑 Entry & Exit Zones:
- Optimal Entry: ₹455–₹465 (near support)
- Resistance Levels: ₹500 (short-term), ₹524 (52-week high)
- Exit Zone: ₹495–₹510 if momentum strengthens
📌 Trend Status: The stock is currently consolidating with a slight bullish bias, holding above long-term support but requiring volume confirmation for breakout.
Positive
- Strong fundamentals with ROCE at 15.2% and ROE at 13.5%.
- Dividend yield of 2.44% provides steady income for investors.
- Low debt-to-equity ratio (0.28) ensures financial stability.
- PEG ratio of 1.12 suggests fair valuation relative to growth.
Limitation
- Quarterly PAT declined to ₹808 Cr. vs ₹1,044 Cr. previously (-33.8%).
- Volume trend weaker compared to average, showing reduced momentum.
- Stock P/E (18.0) is slightly lower than industry PE (23.3), but growth visibility remains limited.
Company Negative News
- Quarterly profit decline (-33.8%) may weigh on sentiment.
- FII holding decreased (-0.02%), showing marginal foreign investor caution.
Company Positive News
- DII holding increased (+0.23%), signaling domestic institutional support.
- Strong fundamentals with consistent ROCE/ROE and low debt profile.
Industry
- Industry PE at 23.3 is higher than OIL’s PE of 18.0, suggesting OIL is undervalued relative to peers.
- Energy sector demand remains cyclical but supported by global commodity price trends and domestic consumption growth.
Conclusion
⚖️ OIL shows strong fundamentals with attractive ROCE/ROE and undervaluation compared to industry peers. Technicals suggest consolidation with mild bullish bias, but volume weakness limits breakout potential. A cautious entry around ₹455–₹465 may be considered with exit targets near ₹495–₹510 if momentum improves. Long-term investors may find OIL appealing for value and dividend yield, while monitoring profit growth trends.
Would you like me to prepare a sector basket overlay comparing OIL against ONGC, BPCL, and Reliance to highlight relative strength and margin-of-safety clarity across the energy sector?