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Investors with a short-term perspective can consider buying the stock of ONGC at current levels.
The stock has been in an intermediate-term uptrend since taking support at ₹156 in late August 2016. After a corrective decline from ₹200 in the month of November, the stock found support at ₹175 in early December. Subsequently, the stock resumed its uptrend and it has been in a short-term uptrend since then. The stock encountered a key resistance at ₹200 in early January and continued to test this level.
On Tuesday, the stock jumped 3.6 per cent accompanied with extraordinary volume, breaking above a key resistance level of ₹200. This rally has decisively breached the key medium-term resistance at ₹200 and has strengthened the uptrend. The daily as well as weekly relative strength indices are featuring in the bullish zone backing the uptrend. The stock trades well above its 21- and 50-day moving averages.
Short-term outlook is bullish for the stock. Traders with a short-term view can buy the stock with a stop-loss at ₹203. Targets are ₹216 and ₹220 levels.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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