IOC, BPCL, HPCL: OMCs shares on fire post Interim Budget; check key levels

IOC is likely to trade on a bullish note as long as the stock sustains above Rs 165, suggests the daily chart.

Shares of oil marketing companies (OMCs) have registered scintillating gains in the last two trading sessions post the Interim Budget as the government not only reduced the proposed equity infusion in these companies but also postponed it to the next financial year.

In Budget 2023, the government had proposed to infuse capital worth Rs 30,000 crore through equity infusion in FY24. However, in Budget 2024 the government has lowered and postponed the equity infusion to Rs 15,000 crore for FY25.

Analysts believe that the move may be on account of strong earnings by the OMCs in the last two quarters.

That apart, crude oil prices have remained in consolidation zone for the last few months, with Brent Crude quoting around $80 per barrel. Thus, raising hopes of further margin gains for OMCs, as fuel prices have been unchanged.

Among individual shares, Indian Oil (IOC) has zoomed 17 per cent, BPCL 15 per cent and Hindustan Petroleum (HPCL) 10 per cent.

Here's how these stocks look placed on the charts.

Indian Oil (IOC)

Current Price: Rs 174

Resistance: Rs 180

Support: Rs 165; Rs 150

IOC is seen trading above its higher-end of the Bollinger Bands on multiple time-frames and also firmly above the key moving averages. Even as key momentum oscillators, namely RSI (Relative Strength Index) is in overbought zone, the stock is likely to trade with a bullish bias as long as it holds above Rs 165. CLICK HERE FOR THE CHART

Similarly, the long-term chart suggests that the bias will remain upbeat as long as the stock sustains above Rs 150. On the upside, the stock may take a breather around Rs 180.

BPCL

Current Price: Rs 579

Upside Potential: 7%

Support: Rs 550; Rs 510

The near-term bullish pivot for BPCL stands at Rs 550, whereas the long-term chart suggests that the bias for the stock is likely to remain favourable as long as it holds above Rs 510. On the upside, the stock may extend the up move towards Rs 620. CLICK HERE FOR THE CHART

HPCL

Current Price: Rs 508

Upside Potential: 6%

Support: Rs 494; Rs 450

HPCL has given a fresh breakout on the daily scale today. Key momentum oscillators are also in favour of further upside for the stock. On the upside, the stock may look to rally to Rs 540-odd levels. Short-term trend is likely to remain bullish above Rs 494. Long-term chart suggests support for the stock at Rs 450. CLICK HERE FOR THE CHART