Petrol export duty: Will RIL shares fall more after Friday's 9% slide?

The bias for Reliance remains positive, with strong support seen at the 50-WMA, below which the next significant support is at Rs 2,350.

Shares of upstream oil companies, both explorers and distributors were in focus on Friday after the government levied tax on the export of petrol, diesel, and aviation turbine fuel (ATF).

The government imposed a Rs 6 per litre tax on export of petrol and ATF and Rs 13 per litre tax on export of diesel. Additionally, it levied a Rs 23,250 per tonne additional tax on crude oil produced domestically. READ MORE

Following which, Reliance Industries and other oil producers ONGC and MRPL slumped up to 10 per cent in intraday trades. Given this backdrop, here’s a quick technical check of oil-related stocks:-

Nifty Oil and Gas Index (NIFTYOILGAS) 

Outlook: 7,000 remains the major support.

The index has a strong support of 7,000-mark, and only a breach below this mark could mean an entry in the bearish territory. The 200-day moving average (DMA) positioned at Rs 7,726 is presently acting as hurdle. The trend needs to watch to ascertain the immediate outlook. CLICK HERE FOR THE CHART

Reliance Industries Ltd (RELIANCE)

Outlook: 50-WMA holds a key 

Unless there is an aggressive sell-off under the support of Rs 2,460, which is its 50-weekly moving average (WMA), the positive bias may not see much of a pain at this counter. The broader outlook continues to experience “higher high, higher low” momentum and a breakout over Rs 2,350 last year, points at an upwards rally from medium-term perspective.  CLICK HERE FOR THE CHART

Bharat Petroleum Corporation Ltd (BPCL)

Outlook: Weak sentiment still persists 

Shares of Bharat Petroleum Corporation have a “Death Cross” breakdown, shows the daily chart. The said pattern symbolizes bearish outlook and exhibits weakness in stock price. To date, the counter has tanked over 30 per cent and continues to see sell-off on every pullback. To show a confirm reversal, the stock needs to conquer Rs 340, its major hurdle mark thus far. The next support for the stock comes at Rs 275. CLICK HERE FOR THE CHART

Hindustan Petroleum Corporation Ltd (HINDPETRO)

Outlook:  Needs to conquer major hurdles

The vertical fall under the support of Rs 260 has spooked a negative bias for the Hindustan Petroleum Corporation stock.  Thereafter, the stock did see some reversal, however failed gravely in holding the upward bias. At present, the stock seems to be making efforts to overcome Rs 230, the initial resistance mark. If it manages to conquer this hurdle, the stock then needs to clear the Rs 250 level to embark signal a likely turnaround. CLICK HERE FOR THE CHART

Indian Oil Corporation Ltd (IOC)

Outlook: Underneath trend looks promising over Rs 70 

While the shares of Indian Oil Corporation trade under the crucial 200-day moving average (DMA) and hinting at forming a “Death Cross”, until the support of Rs 70 is not dismantled, the bearish sentiment might not engulf the stock positive bias entirely.  CLICK HERE FOR THE CHART