ONGC moved in line with our expectation, reversing downward from the resistance at Rs 920. The zone around Rs 920 is a key medium-term resistance and a sharp reversal from here can result in the stock moving in a range between Rs 600 and Rs 900 for a few more months. Therefore investors should wait for a weekly close above Rs 920 or for decline below Rs 800 to buy this stock. The 50 and 200-day moving averages will provide support in declines.
Short term trend in ONGC is down and immediate supports for the stock are Rs 835 and Rs 816. Immediate resistances are Rs 894 and Rs 922. Traders can initiate fresh short positions on a failure to move above the first resistance. – Lokeshwarri S.K.