The recent price hike notification from government of India is very positive for oil and gas sector. Though lot of clarity is yet to come out regarding the subsidy sharing for PSU oil companies. The outlook has became bullish for the sector. Lets look out what the technical says on various stocks from this sector.
ONGC and Oil India
Various brokerage firms has increased the FY15-16E EPS for ONGC and Oil India by 17-31 per cent. On charts ONGC is currently trading in a range of 260- 305 . Breakout from this range can take the stock immediately to 340 and if sustained above 340 we can see the levels of 380-400
Oil India is also trading in the range of 450-490. On upside breakout from this range we can see the levels of 560-600
Reliance Industries limited
RIL current gas production is low. It can be major gainer of gas price increase after its starts increasing the production capacity. The significant increase in production is expected to come in FY2017. On charts the stock is going through a triangle formation weekly close above 905 is the breakout level which can take the stock to 1100 levels in 4-5 months period.