HPCL BPCL Indian Oil

BPCL, HPCL and IOC may rise up to 11 per cent in coming sessions, and if they manage to sustain their upward rally, medium-term bias may strongly shift in bull's favour.

After two tight quarters of profit-margin shrinkage due to global volatility, Indian OMCs are expected to see reduction in operational losses in the October-December quarter (Q3FY23).

Barring Indian Oil Corp, which gained over 4%, the other two oil marketing companies, BPCL and HPCL, trade with negative returns on YTD basis and have immensely underperformed benchmark indices

According to the current chart structures, shares of OMCs needs to hold their relevant support levels to stay afloat.

Except IOC, which managed to hold 200-DMA, other stocks are in no mood to conquer their respective hurdles yet, technical charts indicate

OMC shares traded mixed with HPCL and IOC down 1 per cent and BPCL marginally in the green

Energy relations between India, the world's third biggest oil importer and consumer, and Saudi Arabia have soured as global oil prices spiked

Nifty Energy Index has been consolidating in the range of 14,730 - 13,750 since August. The formation seems like triple-bottom and a breakout would mean can take the index to 15,000 mark

If the deal goes through, an IOCL-BPCL merger will be the third mammoth amalgamation of state-owned companies, excluding banks.

HPCL, BPCL, IOCL, Jet Airways, SpiceJet and InterGlobe Aviation were up in the range of 2% to 5%, as compared to 0.87% rise in the S&P BSE Sensex at 11:13 am.

At 10:50 am; the S&P BSE Oil & Gas index plunged 2.6% or 364 points at 13,810 points, as compared to 0.01% decline in the S&P BSE Sensex.

In past six months, OMC has underperformed the market by falling in the range of 14% to 26% as compared to 6% rise in the S&P BSE Sensex.

HPCL, BPCL and IOCL have gained between 3% and 4%, extending their past two day's gain on the BSE

In past one month, HPCL, Indian Oil and BPCL have underperformed the market by falling between 10% and 13% against 1.9% decline in Sensex.