These OMC stocks witness strong buying amid rising crude oil prices! Do you own any?
The Oil Marketing Companies (OMC) have seen a strong surge recently amid rising crude oil prices. The Brent Crude oil has surged past USD 120 per barrel mark and is likely to remain elevated.
The ongoing Russia-Ukraine war has propelled the crude oil prices higher. With the ease of restriction of lockdown in China, the crude oil demand is expected to rise which in turn shall keep prices higher.
A rise in crude oil is likely to take inflation higher. Thus, most of the sectors are going to face the heat. However, a rise in crude oil is actually beneficial for OMCs. Its top line is expected to increase in two-digit figures while its profitability is going to be positively impacted. Many credit agencies expect the OMC to perform well in future and have upgraded their targets. This is very well known to the market participants and thus, we have seen a stellar rally in OMC stocks. Most of them are over 10-15% above their prior swing lows and are trading higher. Today, the OMC and energy stocks are once again trending. ONGC (5.07%), Oil India (3.62%), GAIL (2.70), Hindustan Petroleum (1.71%), and Indian Oil Corporation (1.53%) are some of the stocks witnessing a strong rise.
As per the technical indicators, the stocks are in a strong bullish mode and expected to trade higher in the coming days. The 14-period daily RSI indicates strong strength in most of the stocks, while other momentum oscillators show bullish signs in the weekly timeframe. Most of the stocks are above their 20-DMA and show short term bullish signs. Taking into consideration the global scenarios, the OMC stocks are going to have a sweet time. Who knows, this year might belong to OMC stocks!
Thus, traders can consider these stocks for swing trading opportunities while medium-term investors can take the opportunity to buy at every dip.
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