As tensions escalate in the Middle East due to the Israel-Iran conflict, Indian oil stocks face selling pressures from rising crude prices and a depreciating rupee. Despite this, experts recommend buying five oil stocks, anticipating recovery as conflicts stabilize.
Amid the ongoing Israel-Iran conflict, Indian oil stocks experienced significant selling pressure over the weekend amidst fears of rising crude oil prices and a weakening Indian National Rupee (INR). Experts predict a potential downturn in the oil sector but also foresee possible recovery as geopolitical tensions ease. VLA Ambala, a SEBI-registered Research Analyst and Co-Founder of Stock Market Today, noted that the energy sector’s momentum has diminished and corrections are expected after substantial declines in recent trading sessions. Crude oil prices have seen a considerable surge, particularly impacting India’s fiscal challenges due to its dependence on oil imports. In light of these developments, experts recommend several oil stocks for investors looking to capitalize on future rebounds. They suggest taking positions in the following five oil stocks: 1. Gandhar Oil Refinery: Currently at ₹216, it is seen as a potential breakout; a buying range of ₹210 to ₹215 is advised targeting ₹228, ₹235, and ₹250 with a stop loss at ₹200. 2. Oil India Limited: With shares up 135% year-to-date despite recent corrections, the stock is stabilizing amidst rising crude prices and is recommended for accumulation with a support level of ₹510 and targets of ₹665 to ₹680. 3. Petronet LNG: Its current momentum indicates favorable investments; it is suggested to buy within ₹340 to ₹350 targeting ₹370 to ₹430, with a stop loss set at ₹310. 4. Bharat Petroleum Corporation (BPCL): Presently priced at ₹340, investors are advised to consider a buying opportunity between ₹310 and ₹290, targeting ₹365 to ₹450, with a stop loss at ₹265. 5. Oil and Natural Gas Corporation (ONGC): The stock exhibits promising potential with a favorable valuation. A buying range of ₹276 and ₹255 is recommended, targeting ₹310 to ₹370, while applying a stop loss of ₹240,
The Israel-Iran war has heightened tensions in the Middle East, causing ripples through global oil markets. This conflict poses significant risks, particularly to oil supply routes such as the Strait of Hormuz, through which a substantial portion of the world’s oil transit occurs. The Indian oil market is notably affected by fluctuations in crude oil prices and the strength of the Indian Rupee against foreign currencies, which directly influence purchasing power and investors’ returns. As such, market analysts are advising investors to strategically navigate potential declines while preparing for possible recoveries post-conflict.
In summary, the ongoing tensions between Israel and Iran have created a volatile environment impacting Indian oil stocks, which are facing selling pressures due to rising crude prices and the weakening rupee. Nevertheless, market experts identify strategic buying opportunities in selected oil stocks that may rebound once geopolitical tensions subside. Investors are encouraged to assess these recommendations while maintaining vigilance regarding market conditions and personal investment strategies.
Original Source: www.livemint.com
