Technical Call: ONGC - BUY

Gurumurthy K | Updated on: Jan 15, 2022
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The outlook for the stock of is bullish

The outlook for the stock of Oil and Natural Gas Corporation (ONGC: ₹161) is bullish. The strong upmove in place since April 2020 has reversed the downtrend that was in place since September 2014. The broad region between ₹140 and ₹130 will now be a strong support for the stock. As long as ONGC sustains above ₹130, there is a strong likelihood of it rising further towards ₹190 initially and ₹215-₹220 eventually. From a long-term perspective, the region between ₹215 and ₹220 is a crucial resistance. A strong break above ₹220 will be very bullish to see ₹300 levels on the upside over the long-term. Investors with medium and long-term perspective can go long at current levels. Accumulate longs on dips at ₹145. Keep the stop-loss at ₹121. Trail the stop-loss up to ₹168 as soon as the stock moves up to ₹186. Move the stop-loss further up to ₹183 as soon as the stock touches ₹198. Book profits at ₹212. The bullish outlook will get negated only if ONGC declines below ₹130 decisively. The stock can then fall to ₹100-₹95. But such a fall looks unlikely.

Published on January 15, 2022

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