Is Oil India all set to zoom after forming an ascending triangle breakout?

Nifty 50 falls in response to global cues, while this PSU stock rises roughly 4 per cent after demonstrating an ascending triangle breakout. Continue reading to learn more.

Nifty 50 began to fall after developing a dark cloud cover candlestick pattern around its 50-Day and 200-Day Exponential Moving Averages (EMA) on June 3, 2022. Yesterday, it began the session below 16,600 and attempted to break through throughout the day, but failed to finish above it. Today, the Nifty 50 futures began below 16,500 and was trading at 16,425 at the time of writing, having reached a high of 16,490 and a low of 16,354. However, the 16,200 to 16,400 levels will operate as a solid support zone, with any breakdown likely to lead Nifty 50 futures to the 15,700 to 15,850 levels.

Although markets are under pressure, one Public Sector Undertaking (PSU) stock has exhibited a positive price chart pattern. Oil India Ltd (OIL) is India's second-biggest national oil and gas firm, engaged in the exploration, development, and production of crude oil and natural gas, as well as the transportation of crude oil and the manufacturing of LPG. OIL is a government-owned corporation under the administrative jurisdiction of the Ministry of Petroleum and Natural Gas.

On a daily chart, OIL showed an ascending triangle breakout with high volumes on June 6, 2022. If we look at the weekly chart, we can see a cup and handle continuation pattern in addition to the ascending triangle breakout. The stock was trading at Rs 290, up 3.76 per cent (10.5 points) at intraday trading. The support and resistance levels are placed at Rs 270 and Rs 335, respectively.