I've made a purchase at around 1.25% of my capital. There's a potential upward move of approximately 22% to reach the top of the ascending channel. However, if the price experiences a sharp decline, I plan to add to my position at the next potential buying level, which is at the bottom of the ascending channel.
According to a Moody's report, high crude oil prices are expected to weaken the profitability of India's three state-owned oil marketing companies—IOC, BPCL, and HPCL. These companies will have limited flexibility to offset rising raw material costs by increasing retail selling prices of petrol and diesel in the current fiscal year due to the upcoming elections in May 2024. The ongoing war situation in Israel may further contribute to an increase in the price of crude oil, which could result in further corrections in their share prices.
However, I anticipate that after the elections conclude in May to June 2024, oil prices will likely rebound, leading to a recovery in the stock prices of these three companies. Therefore, any future declines in their share prices represent potential buying opportunities in my view.
According to a Moody's report, high crude oil prices are expected to weaken the profitability of India's three state-owned oil marketing companies—IOC, BPCL, and HPCL. These companies will have limited flexibility to offset rising raw material costs by increasing retail selling prices of petrol and diesel in the current fiscal year due to the upcoming elections in May 2024. The ongoing war situation in Israel may further contribute to an increase in the price of crude oil, which could result in further corrections in their share prices.
However, I anticipate that after the elections conclude in May to June 2024, oil prices will likely rebound, leading to a recovery in the stock prices of these three companies. Therefore, any future declines in their share prices represent potential buying opportunities in my view.
