The ongoing Israel-Iran conflict has resulted in a decrease in Indian oil stocks due to rising crude prices and a weak Indian Rupiah. Experts suggest that this downturn presents a buying opportunity for medium to long-term investors. They recommend five oil companies, including Gandhar Oil Refinery and ONGC, for consideration in the current market climate as they might rebound following decreased tensions in the Middle East.
The ongoing conflict between Israel and Iran has ignited significant concern within the oil markets, particularly affecting Indian oil stocks. Over the weekend, oil equities in India faced considerable selling pressure, exacerbated by surging crude oil prices and a depreciated Indian National Rupee (INR). Experts forecast further declines in oil stocks on Dalal Street, attributing this to the elevated geopolitical tensions. Nevertheless, they advise medium to long-term investors to consider purchasing oil stocks while they are down, as potential rebounds may occur once the situation stabilizes. VLA Ambala, a SEBI-registered Research Analyst and Co-Founder of Stock Market Today, observed that the energy sector has suffered considerable momentum loss and is likely to face further corrections after recent declines. He noted, “The energy sector’s momentum has weakened significantly and is expected to correct further after a notable decline over the past week. On the other hand, crude oil prices surged, with CRUDEOIL OCT FUT rising by 13%.”, indicating that the conflict poses a significant threat, especially regarding the Strait of Hormuz, which could deeply affect global oil supplies. In light of this, Ambala recommended five oil stocks for investors to consider purchasing on Monday: 1. Gandhar Oil Refinery: Currently trading at ₹216, it exhibits potential for growth with a buying range set between ₹210 and ₹215, targeting prices of ₹228, ₹235, and ₹250 over the next 1 to 8 weeks. 2. Oil India Limited: Despite a year-to-date increase of 135%, the stock experienced a correction but is showing signs of stabilization. Investors may consider accumulating shares, observing a support level of ₹510, and aiming for higher targets from ₹665 to ₹680. 3. Petronet LNG: Shares should be considered within the buying range of ₹340 to ₹350, targeting ₹370 to ₹430 over the next 1 to 10 weeks, with an advised stop loss at ₹310. 4. BPCL: Shares are currently trading around ₹340; a buying range is recommended between ₹310 and ₹290, with expectations to reach targets of ₹365 to ₹450 over 2 to 8 months. A stop-loss of ₹265 is suggested. 5. ONGC: Given its favorable valuation and potential for growth, investors are encouraged to consider a buying range of ₹276 to ₹255, targeting prices from ₹310 to ₹370, while implementing a stop-loss of ₹240 over a timeframe of 1 to 6 months. To conclude, the conflict between Israel and Iran continues to have far-reaching implications for the oil market, particularly for Indian oil stocks. While the current downturn may pose a concerning outlook, experts see this as an opportune moment for medium to long-term investors to enter the market with a cautious approach. Investing in the recommended stocks could yield substantial benefits once stability returns to the region.
The conflict between Israel and Iran has prompted turmoil in the Middle East, traditionally a critical region for oil supply. This unrest has led to fluctuations in crude oil prices, impacting global markets and local economies, including India. The rising prices of crude oil, combined with a weakening INR, have made it difficult for Indian oil-producing companies to operate efficiently. As tensions persist, market experts are analyzing potential investment opportunities within India’s oil sector amid these challenges. They pinpoint specific companies that may rebound following market corrections and increased oil prices stemming from geopolitical instability.
In conclusion, the Israel-Iran war is significantly impacting oil stocks, particularly those listed on India’s Dalal Street. Despite current market volatility and predictions of further declines, the eventual stabilization in the region may provide an attractive opportunity for medium to long-term investors to acquire undervalued oil stocks. The recommended stocks by experts serve as a potential investment pathway amidst challenging conditions in the oil market.
Original Source: www.livemint.com
