Upcoming Bonus Share 2024: Bonus Issue of PSU Stock Due On Monday, 20th May; Buy/Sell?

Considering PSU companies have a history of paying dividend payments, have dominated market positions that support economic growth, and are backed by the Indian government, investors and market observers pay particular attention to them. We are discussing the Maharatna PSU stock Oil India Ltd., which will be the subject of attention next week as the Board of Directors of the country's second-largest oil and gas company is set to convene on Monday, May 20, to discuss and approve bonus shares.

Oil India News

The purpose of the board meeting, which is set for Monday, May 20, 2024, includes among other things discussing and approving the company's audited financial results for the quarter and year that ended on March 31, 2024, both on a standalone and consolidated basis, as well as any recommendations for the final dividend for the fiscal year 2023-2024. During the previously mentioned Board Meeting, the company's Board of Directors may also have a look at a proposal for the issuance of bonus shares.

Oil India Upcoming Dividend

"Pursuant to Regulation 29 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, it is hereby informed that the Board Meeting of the Company has been scheduled on Monday, 20th May, 2024 inter-alia : i. To consider and approve the Audited Financial Results of the Company for the Quarter & Year ended 31st March, 2024 on Standalone and Consolidated basis, and ii. To Recommend Final Dividend for F.Y. 2023-24, if any," said the PSU company in a regulatory filing.

Oil India Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said, "OIL, currently trading at 641.8 levels, is showing signs of a positive technical outlook. The stock has recently rebounded from the support levels around 589 which is also close to 50 Day EMA levels, demonstrating its ability to maintain price stability. Notably, the stock has a minor resistance level at 669, which is in proximity to previous all-time high levels. If the stock manages to sustain a position above this mentioned resistance, it may pave the way for an upward movement towards the target level of 699 and beyond. This is a positive development, as it signifies a potential change in the stock's trend."

"The Relative Strength Index (RSI), a momentum indicator, is currently trading at 56.30 levels. This RSI reading suggests a moderate level of strength in the stock, without being in overbought territory. It implies that there is room for the stock to potentially gather further momentum. The overall trend for OIL is sideways to Bullish, supported by various technical indicators, reinforcing the optimistic outlook. Given these signals, there is a possibility for the stock to achieve a target price of Rs 699 in the near term. It is advisable to consider buying on dips, particularly around Rs 625, to capitalize on potential retracements in the stock price. To prudently manage risk, implementing a stop-loss (SL) at Rs 596 is recommended. This precautionary measure is crucial to safeguard investments in the event of an unexpected market reversal," the analyst further recommended.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.