TANMAY OBSERVES!

Oil prices jumped on Friday by the largest amount in a single-day since the end of 2008. U.S. crude for March delivery ended the trading day up $3.53 to $37.51 a barrel in New York. The largest previous single-session increase came on Dec. 31, 2008, when prices rose by $5.57 a barrel.

Some more rally looks possible in Oil:-

WTI Crude has formed a double bottom pattern in daily graph and can touch $47-49 on the bounce. View gets negated only if $33 gets broken.

Stocks that will benefit when Crude rallies – CAIRN India, RPL, Reliance.

Around 25% weightage is dedicated only to Crude-related stocks in both Nifty and Sensex, that is why market can turn very bullish if Crude recovers from here.

(Graph Source: Netdania)