OMCs and aviation companies up after oil slips
After the international oil prices hit US$80.50 per barrel in the mid of May 2018, the double top at the said levels was expected to drag oil prices for profit booking. However, since May 17, the prices witnessed a downfall of nearly 11 per cent. The recent fall in the prices was in the wake of an expected increase in the output by OPEC, Russia and allies, who are scheduled to meet in Vienna in the next week.
The news has proven advantageous to India’s oil marketing companies and airline operators. The stock of HPCL, BPCL and IOC have held the benchmark indices from falling further and are trailing flat.
HPCL was the top gainer in Nifty with 5 per cent and more gains at 12:15 hours. The stock has breached its 14-day consolidation with rising volumes and 14-period RSI positive crossover at 55. The stock may see a reversal after it sustains 330 levels on a closing basis. IOC grabs the second position with 4.7 per cent gains.
IOC too gave 14-day consolidation breakout along with downward sloping trendline breakout at 175.50. If it sustains above 176.50-177 on a closing basis, the stock may see some more upside then.
BPCL, the fourth gainer in Nifty spiked up 2.5 per cent and gave multiple resistance breakout at 422.50-423.50 levels.
Even aviation stocks like Jet Airways, Spice Jet and Indigo were trading up, yet positive cues seem to blur as for now.