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ONGC - Swing Trade Analysis with AI Signals

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Rating: 4.3

Last Updated Time : 04 Feb 26, 02:09 am

Swing Trade Rating: 4.3

Stock Code ONGC Market Cap 3,23,375 Cr. Current Price 257 ₹ High / Low 278 ₹
Stock P/E 9.93 Book Value 267 ₹ Dividend Yield 4.77 % ROCE 14.8 %
ROE 11.4 % Face Value 5.00 ₹ DMA 50 246 ₹ DMA 200 245 ₹
Chg in FII Hold 0.45 % Chg in DII Hold -0.27 % PAT Qtr 9,848 Cr. PAT Prev Qtr 8,024 Cr.
RSI 56.9 MACD 5.52 Volume 2,02,51,990 Avg Vol 1Wk 3,56,64,686
Low price 205 ₹ High price 278 ₹ PEG Ratio -2.42 Debt to equity 0.10
52w Index 71.6 % Qtr Profit Var -17.8 % EPS 25.9 ₹ Industry PE 18.6

📊 ONGC presents a strong case for swing trading with solid fundamentals and supportive technicals. The stock is currently at ₹257, trading above both its 50 DMA (₹246) and 200 DMA (₹245), showing bullish strength. RSI at 56.9 is moderately positive, while MACD at 5.52 confirms upward momentum. With a high dividend yield (4.77%) and low debt-to-equity (0.10), the stock offers stability. Optimal entry would be in the ₹250–₹255 range. If already holding, exit near ₹275–₹278, where resistance from the 52-week high is expected.

✅ Positive

  • Strong ROCE (14.8%) and ROE (11.4%) indicate efficient capital use.
  • EPS of ₹25.9 supports valuation strength.
  • Dividend yield of 4.77% provides attractive returns.
  • Low debt-to-equity ratio (0.10) ensures financial stability.
  • FII holdings increased (+0.45%), showing foreign investor confidence.

⚠️ Limitation

  • PEG ratio (-2.42) suggests weak growth prospects relative to valuation.
  • Quarterly profit variance (-17.8%) indicates earnings volatility.
  • DII holdings decreased (-0.27%), showing reduced domestic institutional support.
  • Trading volume below weekly average suggests reduced short-term participation.

📉 Company Negative News

  • Quarterly profit decline from ₹11,984 Cr. to ₹9,848 Cr. (-17.8%).
  • PEG ratio negative, reflecting limited growth visibility.

📈 Company Positive News

  • EPS of ₹25.9 and strong ROCE/ROE highlight operational efficiency.
  • Dividend yield of 4.77% adds investor appeal.
  • FII inflows (+0.45%) show confidence in long-term prospects.

🏭 Industry

  • Industry PE at 18.6 is higher than ONGC’s 9.93, suggesting undervaluation.
  • Energy sector demand remains strong, supported by global oil and gas trends.

🔎 Conclusion

ONGC is a strong swing candidate with solid fundamentals, attractive dividend yield, and supportive technicals. Entry near ₹250–₹255 offers a margin of safety. Exit around ₹275–₹278 is advisable if already holding, as resistance is expected near the 52-week high. Despite earnings volatility, the stock remains undervalued compared to industry peers, making it favorable for swing trades.

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