OIL - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

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Technical Rating: 3.8

Technical Analysis Summary

• Trend: Trending upward with moderate momentum
• Moving Averages: Price (₹434) is above DMA 50 (₹416) and DMA 200 (₹425), indicating bullish alignment
• RSI (62.3): Bullish zone, approaching overbought territory
• MACD (4.23): Bullish crossover, supporting continued upside
• Bollinger Bands: Price near upper band, suggesting strength but potential short-term resistance
• Volume: Below average (19.0L vs 29.8L), indicating cautious participation

Entry & Exit Zones

• Support: ₹420 – ₹425 (DMA 200 and recent base)
• Resistance: ₹450 – ₹470 (intermediate resistance zone)
• Optimal Entry: ₹425 – ₹430 on pullback with MACD support
• Exit Zone: ₹450 – ₹470 if price stalls near resistance

Positive

• Strong ROCE (15.2%) and ROE (13.5%) indicate solid operational efficiency
• EPS of ₹33.6 and attractive dividend yield of 2.65%
• PEG ratio of 0.80 suggests reasonable valuation relative to growth
• Price up 52.2% over 52 weeks, showing long-term strength

Limitation

• Quarterly PAT dropped sharply (-44.5%) from ₹1,591 Cr. to ₹813 Cr.
• Volume below average, indicating weak conviction in current rally
• FII holding declined by 0.60%, reflecting cautious foreign sentiment

Company Negative News

• Concerns over declining profitability and global crude price volatility

Company Positive News

• Strong dividend payout and consistent performance in upstream oil operations
• Positive DII sentiment (+0.80%) and strategic investments in exploration

Industry

• OIL operates in the oil & gas exploration and production sector
• Peers include ONGC, GAIL, and Reliance Industries

Conclusion

OIL is currently trending upward with bullish technical indicators and solid fundamentals. While short-term caution is warranted due to declining profits and low volume, valuation and dividend strength support a positive outlook. Traders may consider entry near ₹425 with targets around ₹470, watching RSI and MACD for signs of continuation or reversal.