Accident of the Day: This F&O Inventory Hits a 10% Reduced Circuit!
The past day of the 7 days doesn’t look to go effectively. The worldwide markets are trading in deep purple, the result of which has been found on the Indian markets as very well. By 10:50 AM IST, the benchmark index fell 1.09% to 15,606.05 and is down 1.03% to 52,579 with 10 out of the 11 sectoral indices trading in the red zone.
A major providing for the day has been coming from the oil and gas counters. tumbled by more than 5.5% to down below US$108.5 for every barrel. Despite the fact that easing oil costs is excellent news for the Indian markets, it is really a negative 1 for oil producers these types of as ONGC (NS:). Nonetheless, a double whammy for these oil shares is the government’s selection to hike export obligation on petrol, diesel and ATF (air turbine fuel) to continue to keep the provide in the financial system at adequate degrees and cut down the dependence on imports.
The authorities has greater INR 6 per litre on ATF, INR 12 for each litre on diesel and INR 5 for every litre on petrol. The sudden increase in export duty would decrease the export earnings for these firms. In FY22 the nation exported all around US$42.3 billion of petroleum goods to countries like UAE, Malaysia, Hong Kong and many others. and ONGC also performs a position in the export of these petroleum goods by using its subsidiaries these as MRPL (NS:).
Graphic Description: Weekly chart of ONGC exhibiting assistance and resistance
Impression Source: Investing.com
The share value of ONGC tanked to a reduced of INR 136.4, hitting a 10% reduce circuit. Nevertheless, there are no preset circuits for F&O shares, and they preserve on having revised all through the session as the inventory keeps on making a significant a single-sided shift. Now, the reduce circuit for ONGC shares has been revised to INR 128.85.
Today’s massive slide of 10% has negated the rally delivered in the very last several times right after the government deregulated the domestic oil marketplace and gave autonomy to oil producers to sell their regionally generated oil to any refinery, which was before determined by the central federal government.
Despite the fact that the inventory is obviously in a downtrend, acquiring been corrected about 30% from the 52-week high of INR 194.95, marked on 8 March this yr, there is a incredibly robust guidance zone at about INR 130 – INR 128. This is the exact level from exactly where ONGC shares turned in December final calendar year just after pretty much a 2-month very long correction.
The current strongly bearish sentiments show that the stock could possibly touch this amount all over again. Having said that, a convincing tumble under this aid could possibly create additional panic for current shareholders which could guide to a lot more liquidation.
The past day of the 7 days doesn’t look to go effectively. The worldwide markets are trading in deep purple, the result of which has been found on the Indian markets as very well. By 10:50 AM IST, the benchmark index fell 1.09% to 15,606.05 and is down 1.03% to 52,579 with 10 out of the 11 sectoral indices trading in the red zone.
A major providing for the day has been coming from the oil and gas counters. tumbled by more than 5.5% to down below US$108.5 for every barrel. Despite the fact that easing oil costs is excellent news for the Indian markets, it is really a negative 1 for oil producers these types of as ONGC (NS:). Nonetheless, a double whammy for these oil shares is the government’s selection to hike export obligation on petrol, diesel and ATF (air turbine fuel) to continue to keep the provide in the financial system at adequate degrees and cut down the dependence on imports.
The authorities has greater INR 6 per litre on ATF, INR 12 for each litre on diesel and INR 5 for every litre on petrol. The sudden increase in export duty would decrease the export earnings for these firms. In FY22 the nation exported all around US$42.3 billion of petroleum goods to countries like UAE, Malaysia, Hong Kong and many others. and ONGC also performs a position in the export of these petroleum goods by using its subsidiaries these as MRPL (NS:).
Graphic Description: Weekly chart of ONGC exhibiting assistance and resistance
Impression Source: Investing.com
The share value of ONGC tanked to a reduced of INR 136.4, hitting a 10% reduce circuit. Nevertheless, there are no preset circuits for F&O shares, and they preserve on having revised all through the session as the inventory keeps on making a significant a single-sided shift. Now, the reduce circuit for ONGC shares has been revised to INR 128.85.
Today’s massive slide of 10% has negated the rally delivered in the very last several times right after the government deregulated the domestic oil marketplace and gave autonomy to oil producers to sell their regionally generated oil to any refinery, which was before determined by the central federal government.
Despite the fact that the inventory is obviously in a downtrend, acquiring been corrected about 30% from the 52-week high of INR 194.95, marked on 8 March this yr, there is a incredibly robust guidance zone at about INR 130 – INR 128. This is the exact level from exactly where ONGC shares turned in December final calendar year just after pretty much a 2-month very long correction.
The current strongly bearish sentiments show that the stock could possibly touch this amount all over again. Having said that, a convincing tumble under this aid could possibly create additional panic for current shareholders which could guide to a lot more liquidation.