Indian Oil Stock Hits 13-Month Low: Is This the Perfect Time to Buy?

INTRODUCTION

Indian Oil Stock: Indian Oil Corporation Limited (IOCL) shares saw a 3% bounce on January 14, trading at ₹125 on the NSE, following a dip to a 52-week low. This recovery comes amid ongoing challenges for oil marketing companies (OMCs), which have been grappling with rising global crude oil prices. The surge in oil prices has been fueled by new U.S. sanctions on Russian oil exports, adding further pressure on the sector.

MARKET PERFORMANCE

The shares traded at ₹125 on January 14.

This rebound occurred amidst global crude oil price surges.

U.S. sanctions on Russian oil exports increased market volatility.

Brent crude reached $81 per barrel, impacting IOCL shares.

Despite a 52% return over two years, shares fell 38% from their peak.

EXPERT INSIGHTS

Nilesh Jain from Centrum Broking commented on the situation.

“Indian Oil shares are facing the heat of rising crude,” said Jain.

ECHNICAL ANALYSIS

Riyank Arora noted a critical price breakdown.

“Indian Oil has broken below ₹129.50,” said Arora.

Resistance is at ₹130.

Downside targets are ₹112 and ₹110.

DIVIDEND PAYOUT HISTORY

Indian Oil is a high-dividend-paying stock.

In 2024, it paid ₹7 per share.

In 2023, dividends were ₹3 in July and ₹5 in November.

In 2022, shareholders received bonus shares and ₹6.40 per share in dividends.

CURRENT CHALLENGES

The crude price volatility poses challenges.

Analysts advise caution for short-term investors.

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LONG-TERM POTENTIAL

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Indian Oil’s fundamentals are strong.

Long-term investors may find the stock appealing.

High dividend yield adds to its attractiveness.

EXPERT RECOMMENDATIONS

“IOCL remains a strong player,” said experts.

Watch price movements and technical levels closely.

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