Oil
and Natural Gas Corporation Limited
(ONGC) is an Indian
multinational oil and gas company headquartered
in Dehradun. It is a Public-Sector Undertaking (PSU) of the Government of India,
under the administrative control of the Ministry of Petroleum and Natural Gas. Company is specializing
in the exploration and production of crude oil and gas. The Company has joint
ventures in oil fields in Vietnam, Norway, Egypt, Tunisia, Iran and Australia.
The Group's other activities include deep sea explorations on the east and west
coasts of India, and the exploration of coal bed methane. ONGC is likely to show better price
performance in near term supported by good fundamentals and technical breakout.
On chart, yesterday stock price has hit
52 weeks of Rs. 299.75, also stock price is up by 20% in last 1 month, looks
stock is in spectral uptrend, thus we feel
that there is still some more
left and the rally is likely to continue. On a different time, scale at daily, weekly & monthly chart, stock
price is making higher tops and higher lows pattern and trading above 20DMA (280),
50DMA (275) and 100DMA (255) respectively, suggesting it has potential up move
in upcoming trading sessions, indicate positive outlook for the stock price.
Technically
on daily chart, stock price at. Rs. 298.75 has given a breakout of rounding
pattern at Rs. 297.70 level, and it’s moving towards northward direction,
indicate ongoing bullish rally in the stock price, which will take stock price
towards Rs. 328, which is 10 percent on upside. Applying other indicator on the chart like Bollinger Band (BB) we find
stock price at Rs. 298.75 is ridding the ‘Upper
Bollinger Band’ and the bands are widening, thus
indicating positive momentum.
Momentum
Oscillator, MACD (Moving Average Convergence & Divergence) on higher chart has
given a positive crossover art, favouring the bullish view, which could witness
the ONGC marching higher.
RSI
(Relative Strength Index) 14-week on a weekly and monthly chart are in rising
mode and not yet overbought, which has more room left on upside. The 14-week
RSI also trade above its 9-week EMA, which is positive signal, indicate better
perform in the weeks to come.
If
one were to go by the volume data, then more up move seen on the stock price.
Looking towards the chart
pattern and study i.e. Bollinger Band, RSI and MACD,
we believe stock price may extend its rally towards Rs. 328/348 levels, whereas
Rs.285 will act as a strong support level on a closing basis.
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