The Israel-Iran conflict has led to selling pressures on Indian oil stocks due to rising crude prices and a weak Rupee. Analysts recommend five oil stocks for potential recovery amidst this volatility, aimed at medium to long-term investors. These stocks include Gandhar Oil Refinery, Oil India Ltd, Petronet LNG, BPCL, and ONGC.
Amid the ongoing Israel-Iran conflict, Indian oil stocks have recently experienced significant selling pressure, driven by climbing crude oil prices and a depreciating Rupee. Market analysts anticipate continued dips in these stocks as geopolitical tensions persist. However, they recommend this downturn could present buying opportunities for medium to long-term investors. VLA Ambala, a SEBI-registered Research Analyst and Co-Founder of Stock Market Today, indicated that the energy sector has shown signs of weakness, with potential for further corrections following a recent downturn. He noted a notable 13% rise in crude oil prices, impacted by the conflict, which raises concerns about India’s fiscal deficit and economic stability. Ambala affirms there may still be potential for recovery in oil stocks once tensions ease in the region. He specifically suggested five oil stocks worth purchasing this Monday: Gandhar Oil Refinery, Oil India Ltd, Petronet LNG, Bharat Petroleum Corporation Limited (BPCL), and Oil and Natural Gas Corporation (ONGC). 1. Gandhar Oil Refinery: Ambala indicated this stock is positioned for a breakout with a current trading price of ₹216, suggesting a buying range of ₹210 to ₹215 with targets between ₹228 and ₹250, and a stop loss at ₹200. 2. Oil India Limited: According to Sugandha Sachdeva, Founder of SS WealthStreet, Oil India has seen a 135% increase year-to-date even after a recent decline. As crude prices surged about 10% due to the geopolitical climate, investors may find value in accumulating shares, particularly with a supportive level at ₹510, aiming for higher targets of ₹665 to ₹680. 3. Petronet LNG: Ambala noted the stock is currently appealing for investments, advocating a buying range of ₹340 to ₹350 and projecting a target price between ₹370 and ₹430, with a stop loss set at ₹310. 4. Bharat Petroleum Corporation Limited (BPCL): With BPCL trading at ₹340, Ambala suggested a buying range between ₹290 and ₹310 for a projected target of ₹365 to ₹450, incorporating a protective stop loss at ₹265. 5. Oil and Natural Gas Corporation (ONGC): This stock is recommended for midterm investors, with current pricing suggesting a buying range of ₹255 to ₹276 and target prices between ₹310 and ₹370, advising a stop loss of ₹240.
The conflict between Israel and Iran has escalated significantly, creating substantial volatility in the oil markets. This tension particularly influences oil-producing nations, impacting oil prices globally. India, being heavily reliant on oil imports, faces additional burdens with a depreciating Rupee, further inhibiting the purchasing power of its oil companies. As crude prices rise, analysts suggest Indian oil stocks are likely to experience fluctuations but may also provide lucrative buying opportunities for investors willing to hold for the long term. Key market players are analyzing which stocks to invest in amidst this uncertainty, promoting an agile investment strategy in the energy sector.
In conclusion, the Israel-Iran conflict presents a challenging yet potentially profitable environment for investors in the Indian oil sector. Analysts suggest that despite current sell-off pressures, certain stocks, such as Gandhar Oil Refinery, Oil India, Petronet LNG, BPCL, and ONGC, may offer recovery opportunities once geopolitical tensions stabilize. Investors are advised to proceed with caution and to consult with financial experts to navigate this volatile market effectively.
Original Source: www.livemint.com
