Barring OMCs, Paint & Tyre stocks may see adverse impact if Brent tops $88

OMC stocks like BPCL, HPCL are better placed on the charts; decisive move over their key hurdles could see next leg of upside

A decisive close over $88 a barrel on Brent Oil Futures may trigger a medium-term rally, validating a bottom formation on the charts. In the last eleven sessions, the oil major has mounted close to 10 per cent, taking sharp rebound near the previous 52-week low of $75.64.

Recently, the Brent oil has ascertained mild profit booking around $87.84 a barrel and a close over the breakout mark of $88 could propel the next upward rally. A trade over $88 a barrel shall confirm a positive trend, with $80 staying as an immediate support. 

While the following major hurdle is at $99.60 a barrel, a “Double Bottom” breakout may undoubtedly aim to reach this mark. Furthermore, sustainability over $100 per barrel could even see Brent crude heading towards $125.

On Thursday, Bharat Petroleum Corporation, Hindustan Petroleum Corporation, Ceat and Asian Paints traded with gains in an otherwise frail market. 

Here’s the technical outlook of oil-linked stocks to understand their next move:-

Bharat Petroleum Corporation Ltd (BPCL)
Outlook: Rally over Rs 360 to trigger upside

The bullish stance on the Bharat Petroleum Corporation stock shall see aggression only when the stock price overcomes the hurdle of Rs 360. When this happens, the breakout sentiment could see price action headed to Rs 400 levels. The current chart structures report healthy sentiment, which upon breakout would see elevated momentum. Immediate support comes to Rs 335 and Rs 325 levels. CLICK HERE FOR THE CHART

Hindustan Petroleum Corporation Ltd (HINDPETRO)
Outlook: Breakout above Rs 260 may see further upside

While the technical indicator, the Relative Strength Index (RSI) suggests a negative divergence on the daily chart, the price action is not letting sell-off to dominate the broad positive momentum. The stock is poised to breakout over Rs 260 and a resolute close over the same shall trigger an upside to Rs 285 levels. Support for the bullish sentiment is at Rs 237 and Rs 229 levels. CLICK HERE FOR THE CHART

Asian Paints Ltd (ASIANPAINT) 
Outlook: Current scenario looks weak

The present trend in the shares of Asian paints reveals a negative bias. The stock has broken a key support of Rs 3,025 level, with price action failing to retrieve back the upside move. Sustaining beneath crucial moving averages of the 200-day moving average (DMA), 100-DMA and 50-DMA point to a bearish sentiment. The supports for the stock exist at Rs 2,800 and Rs 2,900 levels. CLICK HERE FOR THE CHART

Berger Paints India (BERGEPAINT)
Outlook: Weakness continue to persists

The broad chart structure of the Berger paints shares demonstrates “Lower High, Lower Low” formation signifying a bearish trend. While the stock has reached close to the support of Rs 550, the reversal or accumulation has not been lucrative. The immediate hurdles are at Rs 580 and Rs 590 levels. CLICK HERE FOR THE CHART

CEAT Limited (CEATLTD)
Outlook: Breakout over Rs 1,800

The immediate trend in the Ceat shares signifies support at Rs 1,500-mark, which needs to be considered on the closing basis. On the flip side, the breakout may emerge when the stock surpasses the hurdle of Rs 1,800-mark, with robust volume structures. Above Rs 1800-mark, the stock could rally towards Rs 1,950 levels. CLICK HERE FOR THE CHART

Apollo Tyres Limited (APOLLOTYRE)
Outlook: Sideways trend

Apollo tyres shares are currently consolidating the range of Rs 330 to Rs 300 levels. Any breach of this range would signal the trend direction. The broad structure denotes the likelihood of an upward breakout, as the corrective moves are decisively gaining accumulation. An upward breakout may result in stock hitting Rs 260 in the near future.  CLICK HERE FOR THE CHART