CRUDE OIL Impact on Oil Marketing Companies

Hello Investors, 

Its been a while, Shah Stocks hasnt been able to publish a Blog but all the followers are regularly updated via Whatsapp Broadcast message. We will try to update Blog weekly from next month, as we are expanding and expanding for our Investors community. An investor can whatsapp us on number +91-8849380276 for any of the queries related to Investments.

Shah Stocks has already started Q&A session where any Investor can ask their query related to his/her investments, previously held shares, or if they have dount regarding any stock. Shah Stocks will try to help you with your queries getting answered. Investor will be able to get a clear and crisp view for next action on that particular stock.

CRUDE OIL price impact:

Now, looking at the past few months movement of Crude Price, it has been a nightmare for many of the companies to post good results. Reason is simple, major raw material for many companies in their products is Crude Oil. 

Even OMC's have taken a hit, shedding more than 50% from their share price from top. So now, is it the right time to enter in those companies? Answer is Yes, we can start looking to Invest in these companies slowly.

Today, Oil prices tumble the most; even after having a biggest weekly supply drop in nearly 2 years. This means, there will be changes in the shares to BUY. IOCL, BPCL, HPCL will surely be on a BUY list. These companies have already been hit very hard and are now too much undervalued. 

Crude has fallen almost 5% today which will be a Huge trigger for all OMC's (Oil Marketing Companies). What we want to point out is the best stock in this category. Fundamentally and valuations wise, all of these 3 stocks are great. 

But looking at technicals, HPCL has the crucial support at Rs 255.00 and its now trading at Rs 265.00. dividend Yield of 11% is surely an attractive thing at the moment

Indian Oil has similar kind of story. Its trading at around Rs 155 and the quick support at Rs 144.00. This support is much better than HPCL. So I would prefer Indian Oil over HPCL. Higher Dividend Yield of 12% will surley attract investors more here.

BPCL is still under its support levels and needs to close above Rs 380.00 where its support lies. Dividend Yield is lowest among 3 companies at around 8%.

Looking at all the factors, Shah Stocks would prefer buying Indian Oil and HPCL currently over BPCL.

Disclaimer: Before acting on any advice or recommendation in this material, investors should consider whether it is suitable for their particular circumstances and, if necessary, seek professional advice. The price and value of the investments referred to in this material and the income from them may go down as well as up, and investors may realize losses on any investments. We don’t accept any responsibility for any Loss/ Profit arising from your decisions. Past performance is not a guide for future performance, future returns are not guaranteed and a loss of original capital may occur.

Dont forget to like/follow our Page here: https://www.facebook.com/ShahStocks