Shares of oil marketing and refining companies, including Reliance Industries and Oil and Natural Gas Corporation (ONGC), traded with volatility in intraday deals on the BSE on Monday, January 5, following the US attack on Venezuela.
Reliance share price hit an all-time high of ₹1,611.20 but dropped over 1% from its peak to hit an intraday low of ₹1,588.70. On the other hand, ONGC’s share price dropped over 2% to an intraday low of ₹235.75 after rising over 2% to an intraday high of ₹246.55.
The BSE Oil and Gas index declined by 1% during the session, a day after rising by almost 1%.
The US-Venezuela saga: What it means for Reliance, ONGC?
Experts say that while tensions between the US and Venezuela have reintroduced a risk premium into global oil markets, their impact on Reliance Industries and ONGC may differ.
According to Seema Srivastava, Senior Research Analyst at SMC Global Securities, for ONGC, the impact is relatively straightforward.
“Higher and more volatile Brent prices directly enhance upstream realisations, supporting revenue, EBITDA, and cash flows across its domestic and overseas production portfolio. ONGC’s earnings visibility improves as crude firms, with volumes largely unaffected,” said Srivastava.
Reliance shares: What tech charts indicate?
According to Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, Reliance is showing steady bullish traction at the current juncture, having taken support near the rising trendline and sustaining above all major DEMA clusters on the daily chart, which reflects a strong underlying price structure.
Patel highlighted that on the broader timeframe, a visible cup-and-handle breakout on the monthly chart signals the possibility of a sustained upside continuation, as such formations typically follow a consolidation phase before expansion.
“From an indicator standpoint, ADX holding above 20 highlights improving trend strength, while RSI sustaining above 60 indicates positive momentum and continued buying interest. Based on this setup, traders may look for a potential upside target of ₹1,680, while maintaining a stop loss at ₹1,510 on a daily-close basis, with accumulation preferred on dips,” said Patel.
ONGC shares: What tech charts indicate?
According to Patel, at the current juncture, ONGC has witnessed selling pressure from the day’s high and is presently trading just above the weekly pivot support at 235. This indicates some hesitation at higher levels.
“For the next two sessions, a sustained close above 242 will be crucial to confirm upside continuation and revive bullish momentum. Until such a confirmation is seen, the prudent approach would be to maintain a wait-and-watch stance,” said Patel.
“On the downside, ₹235 remains the immediate short-term support, and a breach of this level could invite further weakness. On the upside, ₹245 is placed as the near-term resistance, where supply is likely to emerge. Overall, directional clarity will depend on price behaviour around the ₹242–245 zone,” said Patel.
