OIL Analysis

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OIL India is one of the listed PSU's. This stock has been in the downtrend since the start of 2018. This script made a lifetime high at Rs.335 in Sep 2014 and a lifetime low at Rs.137.05 on Jan 2020. In general, when the price is correcting, delivery volumes tend to be on the lower side. However, there has been a rise in delivery volumes in OIL from the last 5 days indicating somebody is accumulating this stock at this level. All momentum indicators/oscillators are indicating that the stock is in an extremely oversold zone. Historically, whenever RSI fell below 30 there has been price reversal. Keep a close watch on this stock and trade and /or invest per your risk appetite.

Conclusion: Increase in Delivery Volumes, Technical Indicators suggesting that the stock is in the extremely oversold zone, historical RSI trend reversal confirmation are indicating that there can be a possible reversal in OIL if the price sustains above Rs. 137.00