The long-term outlook remains negative for the stock of ONGC. The stock finds an immediate support at ₹72.90 and the crucial one at ₹65.75. A close below the latter will trigger a fresh decline in ONGC, which might take the stock towards ₹50. ONGC finds an immediate resistance at ₹92.80 and the next one at ₹103.45. A close above ₹118 will change the medium-term outlook to positive for ONGC, which can take the stock towards ₹147.90.
F&O pointers: ONGC July futures at ₹80.75 is marginally trading in the premium with respect to the spot close of ₹80.35. Despite strong gains by ONGC futures on Friday, open interest declined, signalling traders’ preference to book profit. Options trading indicates that the stock will move in a range, as both call and put options of most strike prices shed open positions.
This strategy is for traders who can withstand wild swings and have deep pockets to meet margin commitments. Risk-averse traders can stay away from this strategy. Traders could exit from the positions if the loss mounts to ₹5,500.
(Note: The recommendations are based on technical analysis and F&O positions. There is a risk of loss in trading.)