Recent Production cut deal from OPEC is hitting the Oil and petroleum Industry. India’s Oil producers rose by correlation with Crude Oil. However Oil refiners fell, as firm crude price pushes input cost. Hindustan Petroleum (HPCL), a notable Oil refining Firm fell 4.4% after the announcement, prices opened with a Gap down and tumbled after the announcement.
Some other stocks that followed the move are Bharat Petroleum Corp (BPCL) which slipped 2.3% and Indian Oil (IOC) tumbled 1.9%.
Hindustan Petroleum Shares already some signs on earlier days, Market was already pricing in the move. Upside failure pattern near the high of Price channel 480.00 (Kindly look at the chart for Price action trading Analysis, I cover these type of chart analysis techniques, trading strategies in premium course) represented some nice defense from sellers. Look for trading the Price channel, wait for holding patterns or breakout setups. Also look out for sentiment shifts and false moves.
