RIL, ONGC: Keep stocks of these oil explorers on radar as crude prices soar

Charts suggest that shares of oil exploration companies can rally over 16 per cent from present levels.

Shares of oil exploration companies rallied up to 6 per cent in Monday's intra-day trade after Brent Crude once again topped the $91 per barrel level amid fears that the Israel-Palestine war may escalate to neighbouring countries.

Brent Crude Oil futures had hit a high of $97.69 in late September post which saw a sharp fall of over 14 per cent to a low of $83.44 in just seven trading  sessions owing to concerns that global economic slowdown could impact demand.  However, the crude oil bulls swung back into action after the Israel war broke out on October 07. 

Back home, among oil explorers, Aban Offshore surged up to 6 per cent. Oil India, ONGC and Selan Exploration gained in the range of 2-3 per cent. Reliance  Industries, however, traded marginally in red.

Meanwhile, here's how the stocks are placed on the charts.

Reliance Industries

Current Price: Rs 2,348

Bias: Range-bound

Reliance Industries had witnessed a 'Golden Crossover' in late June, wherein the  50-DMA (Daily Moving Average) crossed over the 200-DMA. Post which, the stock  rallied up to 16 per cent to a high of Rs 2,595 on July 19. Thereafter, the stock  

has been consolidating and off late trading with a slightly negative bias.

The short-term (20-DMA) at Rs 2,350 has slipped below the 50- and 100-DMA, and is  acting as an immediate resistance on the daily chart. However, all three moving  averages are still fairly above the 200-DMA at Rs 2,285, which has acted as a  

support for the stock in recent days.

The overall chart structure remains positive, but the stock may remain range-bound in the near term as the stock is trading right between its key moving averages. 

Presently, the stock is testing resistance at its 20-DMA at Rs 2,350 level, above  which it is expected to face resistance around the 100-DMA and 50-DMA at Rs 2,395  and Rs 2,420 in the near term. CLICK HERE FOR THE CHART

ONGC

Current Price: Rs 187.40

Upside Potential: 5%

Shares of ONGC have witnessed a stupendous rally post the 'Golden Crossover' in  mid-April 2021. The stock has more-than-doubled from levels of Rs 89-odd levels  since then. 

Presently, the stock has been making higher-highs and higher-lows since July 2022  and trading firmly above all its key moving averages. The price-to-moving average  action also remains favourable. The only concern seems to be a negative divergence in select momentum oscillators on the weekly chart.

Having said that, on the upside the stock can potentially rally to Rs 197, after  clearing the resistance at Rs 190.50. On the downside, the 50-DMA at Rs 180.50 is  expected to act as a strong support. CLICK HERE FOR THE CHART

Oil India

Current Price: Rs 322

Upside Potential: 9%

The stock looks fairly bullish on the charts, as it trades firmly above all the key moving averages. The near term bias is likely to bullish as long as the stock sustains above Rs 312-level. On the upside, the stock can potentially rally to Rs 340. CLICK HERE FOR THE CHART

Aban Offshore

Current Price: Rs 49.80

Upside Potential: 16.5%

Aban Offshore witnessed a 'Golden Crossover' on September 01, post which the stock rallied nearly 8 per cent and then consolidated. The recent spurt in Brent Crude Oil has once again lifted the sentiment at this counter. 

Presently, the stock is seen trading above its higher-end of the Bollinger Band on the daily charts. This suggests, that the short-term bias is likely to remain bullish as long as the stock manages to hold above Rs 49-level. On the upside, the stock can rally to Rs 58, suggests the monthly chart. CLICK HERE FOR THE CHART

Selan Exploration

Current Price: Rs 460

Bias: Consolidation likely

Selan Exploration has soared over 18 per cent in the last four trading sessions with a meaningful rise in volumes. The near-term bias is likely to favour the bulls as long as the stock trades above Rs 417 levels. 

On the upside, the trend line indicates that the stock can potentially target Rs 475 - 480 levels on the upside. However, post that some consolidation can be expected as select momentum oscillators have entered overbought zone on the daily chart. CLICK HERE FOR THE CHART