BPCL faces selling pressure as oil rises

Akhil Nallamuthu BL Research Bureau | Updated on September 17, 2019 Published on September 17, 2019

The stock of Bharat Petroleum Corporation Limited (BPCL), after surging from ₹329.3 to ₹408.5 in last three weeks posted a strong gain of 24 per cent. However, this week the stock is witnessing huge selling pressure as crude oil price flared up due to geopolitical tensions in the middle east that happened over the weekend.

On Monday, BPCL opened lower at ₹388 against previous close at ₹408.5 and closed the session at an even lower level of ₹380, declining by 7 per cent. Volatility in crude oil price is expected to keep the stock price under pressure, whereas in today’s session also the stock price depreciated after opening at ₹379.9 and is currently trading at ₹371 levels.

Crude oil price will most likely stay at elevated levels and as a result the stock price of BPCL might be get dragged to lower levels. Hence, traders with short-term perspective can sell the stock with stop loss at ₹377 and look for a target of ₹363.

Supports: ₹363 and ₹360

Resistances: ₹377 and ₹380

Published on September 17, 2019
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