Hindustan Petroleum falls up to 3.5% on lower Q2 profit

Hindustan Petroleum Corporation Limited shares fell up to 3.5% amid Q2 results, with profit down 9.1% and revenue up 33.4%. Support is at Rs 323. Hindustan Petroleum Corporation Limited [

] shares fell as much as 3.5% on the day, amid its Q2 results. Standalone profit fell 9.1% to Rs 3,482.6 crore from Rs 3,830.4 crore a year earlier. Revenue rose 33.4% to Rs 1,34,434 crore from Rs 1,00,781.1 crore. Revenue grew strongly while profit declined, which points to lower profitability on higher sales. The update gives no margin data, so the cause cannot be judged. Oil marketing companies are sensitive to fuel margins and crude oil prices, so the market may be weighing the lower profit against the sales growth, though that is only a possible reason. In my view, the near-term tone is cautious after the results, and the support and resistance levels matter more than the headline. A fall below the Rs 323 support would put lower levels in view. A move above the Rs 352 resistance would bring a recovery attempt into focus. Until one of these levels breaks, the stock may stay range bound. Neutral stance while price trades between Rs 323 and Rs 352. Disclaimer: I do not hold any position in this. This content is for informational purposes only and is not a recommendation to buy or sell. Investments in securities are subject to market risks. Please read all related documents carefully before investing.