Oil India, ONGC, IOC, HPCL, BPCL shares gain up to 7%; here's what analysts say
For Oil India stock, the consolidation zone around 480–490 is a key support, with the setup favouring further upside toward the 540–560 target zone in the near term, Shah said.
- Feb 4, 2026,
- Updated Feb 4, 2026 2:53 PM IST
Shares of oil exploration & production stocks such as Oil India, ONGC and others climbed on Wednesday, rising as much as 7% in early trade. At the last check on the BSE, Oil India led the gains, rising 6.63% to Rs 521.10.
It was followed closely by Oil and Natural Gas Corporation (ONGC), which rose to Rs 269, a gain of 4.63%.
Indian Oil Corporation (IOC) was up 3.10% to Rs 172.75, while Hindustan Petroleum Corporation (HPCL) climbed to Rs 461.10, gaining 2.24%. Bharat Petroleum Corporation (BPCL) is also in green with a 2.02% gain at Rs 380.80.
The broader BSE Oil & Gas index was up 2.21% to 28,980.02.
Saurabh Jain, Head of Fundamental Research at SMC Global Securities, pointed out that while geopolitical tensions linger, the market dynamics remain supportive for downstream players.
“Brent crude has seen a modest uptick amid renewed geopolitical noise in the Middle East, yet it remains comfortably in the moderate $65–70 range and lower than earlier peaks,” Jain said.
Jain said that the current movement in OMC stocks like BPCL, HPCL, and IOC is a result of the market digesting the strong tailwinds from the earlier drop in crude prices, which delivered materially higher gross refining margins and robust profitability in Q3FY2026.
“That earnings strength, combined with a healthy rebound in petroleum product volumes driven by seasonal demand and economic pickup, plus the welcome absence of any excise duty hike in the recent Budget, has removed a major overhang and kept investor sentiment supportive,” Jain added.
Jain noted that downstream players are simply benefiting from the current stable-to-moderate crude environment through improved refining cracks and marketing spreads, allowing OMCs to maintain positive momentum even as oil inches higher. “The rally looks set to continue as long as crude doesn’t spike sharply; Middle East escalation remains the primary risk to watch,” he added.
Oil India is displaying a strong bullish continuation structure on the daily chart, with price breaking out to fresh 52-week highs, said Aakash Shah, Technical Research Analyst at Choice Equity Broking.
For Oil India stock, the consolidation zone around 480–490 is a key support, with the setup favouring further upside toward the 540–560 target zone in the near term, Shah said.
For ONGC, Shah noted a sharp bullish breakout from its recent consolidation range, supported by rising volumes. The stock has reclaimed its 20 and 50 EMAs, indicating a shift in momentum in favour of buyers.
“Structurally, for ONGC stock the breakout zone around 250–255 now acts as an important demand area. Sustained holding above this zone keeps the bullish structure intact and opens the door for further upside toward the 280–290 target zone,” Shah said.
Meanwhile, BPCL is exhibiting “strong relative strength, with price trading near all-time highs,” according to Shah. “From a structural perspective, the previous breakout zone near 350–355 now acts as a key support base,” Shah explains, adding that as long as the price holds this region, the structure remains valid for a potential move toward the “395–420 target zone,” he added.
Shares of oil exploration & production stocks such as Oil India, ONGC and others climbed on Wednesday, rising as much as 7% in early trade. At the last check on the BSE, Oil India led the gains, rising 6.63% to Rs 521.10.
It was followed closely by Oil and Natural Gas Corporation (ONGC), which rose to Rs 269, a gain of 4.63%.
Indian Oil Corporation (IOC) was up 3.10% to Rs 172.75, while Hindustan Petroleum Corporation (HPCL) climbed to Rs 461.10, gaining 2.24%. Bharat Petroleum Corporation (BPCL) is also in green with a 2.02% gain at Rs 380.80.
The broader BSE Oil & Gas index was up 2.21% to 28,980.02.
Saurabh Jain, Head of Fundamental Research at SMC Global Securities, pointed out that while geopolitical tensions linger, the market dynamics remain supportive for downstream players.
“Brent crude has seen a modest uptick amid renewed geopolitical noise in the Middle East, yet it remains comfortably in the moderate $65–70 range and lower than earlier peaks,” Jain said.
Jain said that the current movement in OMC stocks like BPCL, HPCL, and IOC is a result of the market digesting the strong tailwinds from the earlier drop in crude prices, which delivered materially higher gross refining margins and robust profitability in Q3FY2026.
“That earnings strength, combined with a healthy rebound in petroleum product volumes driven by seasonal demand and economic pickup, plus the welcome absence of any excise duty hike in the recent Budget, has removed a major overhang and kept investor sentiment supportive,” Jain added.
Jain noted that downstream players are simply benefiting from the current stable-to-moderate crude environment through improved refining cracks and marketing spreads, allowing OMCs to maintain positive momentum even as oil inches higher. “The rally looks set to continue as long as crude doesn’t spike sharply; Middle East escalation remains the primary risk to watch,” he added.
Oil India is displaying a strong bullish continuation structure on the daily chart, with price breaking out to fresh 52-week highs, said Aakash Shah, Technical Research Analyst at Choice Equity Broking.
For Oil India stock, the consolidation zone around 480–490 is a key support, with the setup favouring further upside toward the 540–560 target zone in the near term, Shah said.
For ONGC, Shah noted a sharp bullish breakout from its recent consolidation range, supported by rising volumes. The stock has reclaimed its 20 and 50 EMAs, indicating a shift in momentum in favour of buyers.
“Structurally, for ONGC stock the breakout zone around 250–255 now acts as an important demand area. Sustained holding above this zone keeps the bullish structure intact and opens the door for further upside toward the 280–290 target zone,” Shah said.
Meanwhile, BPCL is exhibiting “strong relative strength, with price trading near all-time highs,” according to Shah. “From a structural perspective, the previous breakout zone near 350–355 now acts as a key support base,” Shah explains, adding that as long as the price holds this region, the structure remains valid for a potential move toward the “395–420 target zone,” he added.