ONGC achieved our medium-term target of Rs 920 and moved sideways thereafter. As mentioned in our previous column, target of the third wave from the Rs 637 trough is Rs 926.
The sharp up-trend from the March 6 trough can lose steam around these levels and a correction can ensue that pulls the stock lower to Rs 800 or even Rs 750. Firm break-out above Rs 960 is required to mitigate this view.
The short-term trend in ONGC is positive and short-term traders can buy on declines as long as the stock trades above Rs 850.A strong move above Rs 920 can take the stock to Rs 1005. Medium-term investors can hold the stock as long as it trades above Rs 800.
Lokeshwarri S. K.
Our View :
Drop in volumes and drop in prices indicate short term correction in the stock. Avoid or sell above 950 and close positions intraday.