📰 🔥 ONGC and Oil India rise 3%, while OMCs fall: Oil rises as tensions between Israel and Iran rise.

📝 Source: CNBC-TV18 and Economic Times

Global oil markets reacted strongly when tensions between Israel and Iran rose. Brent crude prices went over $87 per barrel, which caused changes in the Indian energy sector as a whole. While upstream oil producers did well, downstream companies had a hard time.

📊 What Happened to the Market Today?

Segment Key Stocks Move Upstream Oil ONGC, Oil India 🔺 +2.5% to +3.2%

Downstream OMCs IOC, BPCL, and HPCL went down by 1.2% to 2.1%.

Tyre/Logistics: Apollo Tyres, Indigo, Delhivery—Margins are under pressure

🔍 What Happened

Geopolitical Shock: New tensions in the Middle East made people worry about supply problems.

Crude Spike: Brent crude rose almost 2.3% during the day, making up for the dip from the day before.

Impact on margins: For oil marketers and the transportation industry, higher crude prices mean lower profits. It's a way for upstream producers to make more money.

What It Means for Investors and Traders 🧠 Swing Rabbit View: The setups for ONGC and Oil India look good as crude prices go up. Keep an eye out for consolidation to follow.

Don't buy OMCs aggressively; wait for stability or signs of demand-side tailwinds.

Tyre and airline stocks might not do well unless oil prices drop. Use tight SLs.

🐢 Long Rabbit View: Keep an eye on whether this rise in crude is just a short-term spike or a long-term trend.

If the price stays stable above $85, institutional investors may start buying upstream oil stocks.

Important Levels to Keep an Eye On Stock Support Resistance ONGC ₹270 ₹286–290

Oil India: ₹510 to ₹535–545

BPCL: ₹460–₹485

Apollo Tyres: ₹420–₹450

⚠️ Risk Reminder: Crude-led spikes can be good for momentum trades, but geopolitical rallies are usually short-lived and based on events. Set up clear risk-reward ratios to help you manage your exposure, especially in high-beta stocks.

📢 Rabbit RA is a Research Analyst (INH000010964) registered with SEBI. The only purpose of this blog is to teach. There are risks in the market when you invest. Before you invest, please read all the documents that have to do with the scheme.

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