Oil & Natural Gas Corpn Ltd

NSE :ONGC   BSE :500312  Sector : Crude Oil & Natural Gas

About Company: Maharatna ONGC is the largest crude oil and natural gas Company in India, contributing around 71 per cent to Indian domestic production. Crude oil is the raw material used by downstream companies like IOC, BPCL, HPCL and MRPL (Last two are subsidiaries of ONGC) to produce petroleum products like Petrol, Diesel, Kerosene, Naphtha, and Cooking Gas LPG.ONGC has a unique distinction of being a company with in-house service capabilities in all areas of Exploration and Production of oil & gas and related oil-field services. Winner of the Best Employer award, this public sector enterprise has a dedicated team of around 28,500 professionals who toil round the clock in challenging locations

Daily Chart of ONGC:

Technical Outlook of ONGC:

On Monday 7th March 22 stock surged 13.13% and closed at 186.95 gaining Rs.21.70 per share on NSE. Volatility is ruling the market currently INDIA VIX is trading at 29.33 which suggest market is wild and volatile. Due to Global concerns market opened Gap down. Nifty future formed a doji pattern which is considered as undecisive for the market. As market is under pressure and sell from higher levels are seen so we suggest to have a cautious move in the market.

On the daily chart of ONGC we can clearly seen range breakout and stock is trading above its resistance level of 175, now this level will act as strong support for the stock. Relative strength Index is heading towards 70 mark which suggest high momentum in the stock. Volumes also surged today and unusual volumes were seen in the stock.

Look as the chart structure, Range breakout and crude oil movement in the international market we have a positive view on the stock. We suggest to buy stock on corrections till 175 with stoploss below 169 for the targets of 205-210 in the next few trading sessions.