Technical Analysis of OIL INDIA & ONGC

1. Stock name: Oil India Ltd.

Pattern: Inverse head and shoulder pattern

Time frame: Monthly

Observation:

Since October 2014, the stock has experienced a continuous decline. However, from March 2015 to July 2023, it exhibited a bullish inverse head and shoulder pattern on its monthly charts. The pattern broke out with the July 2023 candle, leading to an upward trajectory in subsequent trading sessions. Additionally, the stock's RSI is at a favorable level of approximately 65. According to technical analysis, if the stock can sustain this momentum, it may continue its upward movement.

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Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

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2. Stock name: Oil & Natural Gas Corporation Ltd.

Pattern: Inverse head and shoulder pattern

Time frame: Monthly

Observation:

Since September 2014, the stock has been on a consistent downward trajectory. However, between October 2018 and July 2023, it exhibited a bullish inverse head and shoulder pattern on its monthly charts. This pattern finally broke out in July 2023, leading to a subsequent upward movement in the stock during subsequent trading sessions. According to technical analysis, if the stock maintains this momentum, it may continue its ascent in the future.

You may add this to your watch list to understand further price action.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

News for the day:

1) Vedanta Resources, a mining and metals conglomerate, is in advanced negotiations with global private credit funds, including Cerberus Capital, Bain Capital, Ares SSG Capital, and Davidson Kempner, to secure a $1 billion short-term loan. This loan will be utilized to partially repay $3.2 billion worth of bonds set to mature in 2024 and 2025, consisting of $1 billion of 13.875% bonds in January, $1 billion of 6.125% bonds in August 2024, and $1.2 billion of 8.95% bonds in March 2025.

2) The Sensex tumbled 300 points, or 0.46%, and the Nifty dipped below 19,850 as the US Federal Reserve's decision to maintain benchmark interest rates at 5.25% - 5.50% in a more hawkish tone triggered negative sentiment in Indian equity markets. Key stocks such as HCL Tech, ICICI Bank, HDFC Bank, UltraTech Cement, and Nestle opened with losses, while Sun Pharma, SBI, Bajaj Finance, and NTPC opened with gains. This marked the third consecutive session of opening in the red for Indian stocks as concerns about global economic conditions and interest rate policies loomed.

3) Tata Consumer Products is leading the race to acquire Capital Foods, the maker of Ching's Secret and Smith & Jones brands, valuing the company at Rs 5,500 crore. This move will bring Tata into competition with Nestle's Maggi in the Rs 5,000 crore branded instant noodles market.