Oil India Limitedis the second-largest Indian government-owned company that deals in hydrocarbon production and exploration. It is in the business of transportation of crude oil, natural gas, and liquid petroleum.
Its exploration operations are spread across Assam, Arunachal Pradesh, Mizoram, Tripura, Odisha, Andhra Pradesh, Nagaland, and Rajasthan,along with some offshore locations like Andaman and Nicobar Islands, Kerala Konkan, and Krishna Godavari shallow waters.
Recently, the company acquired significantEquity holdings in Numaligarh Refinery Limited, making NRL a subsidiary. That has led to company earnings growth, especially amid a rise in gross refining margins and rising crude oil prices. Unsurprisingly, the stock is among the outperformers in the market in the calendar year 2022 in June. Even though it has seen some profit booking at highs, the Oil India shareis up 20% yearly.
What could be some successful trading strategies in Oil India share price? After going through the technical and fundamental indicators, one can conclude whether to buy for long term or trade for the short term.
Fundamental analysis
In its Strengths, Weaknesses, Opportunities, and Threats analysis, ICICIdirect notes down points that make it one of the most sought-after names in the market. It sees just one weakness in the Oil India Limited share price.
Strength includes, but is not limited to, a high Piotroski score meaning strong financials, high earninggrowth in the last few quarters, improving book value, improving profit margins, the rising stake of foreign investors, zero promoter pledging of shares, and fulfilling the majority of CAN SLIM investment criteria, which famous investor William O’Neil has developed.
According to the broker, the weak investors should consider decreasing the stake of Mutual Funds in the company recently. Opportunities present themselves asa relatively low price-to-earnings ratio of about seven times and a high analyst rating which projects at least 20% upside from current levels. A solitary threat is that the stocks showa downtrend and are most likely to soon cross below the 200-day simple moving average.
Technical factors
Near-term price momentum is mixed for the stock. According to ICICIdirect, seven moving averages are bullish (five-day, 100-day, 150-day, 200-day SMA, and five-day, 100-day, 200-day exponential moving averages or EMA) and nine (10-day, 12-day, 20-day, 26-day, 50-day EMA, and 10-day, 20-day, 30-day, 50-day SMA) that are bearish.
Relative Strength Index, Money Flow Index, Average Directional Index, and Rate of Change125 indicators are neutral. Average True Range and ROC 21 are in positive territory or bullish, whereas Williams %R, Commodity Channel Index, and Moving Average Convergence Divergence are in the bearish zone for Oil India.
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https://www.icicidirect.com/stocks/oil-india-ltd-share-price
