ONGC - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.1
| Stock Code | ONGC | Market Cap | 3,38,727 Cr. | Current Price | 269 ₹ | High / Low | 293 ₹ |
| Stock P/E | 10.4 | Book Value | 267 ₹ | Dividend Yield | 4.55 % | ROCE | 14.8 % |
| ROE | 11.4 % | Face Value | 5.00 ₹ | DMA 50 | 264 ₹ | DMA 200 | 252 ₹ |
| Chg in FII Hold | 0.45 % | Chg in DII Hold | -0.27 % | PAT Qtr | 8,372 Cr. | PAT Prev Qtr | 9,848 Cr. |
| RSI | 50.5 | MACD | -0.02 | Volume | 3,03,70,767 | Avg Vol 1Wk | 1,98,54,149 |
| Low price | 205 ₹ | High price | 293 ₹ | PEG Ratio | -2.53 | Debt to equity | 0.10 |
| 52w Index | 72.7 % | Qtr Profit Var | 1.60 % | EPS | 26.0 ₹ | Industry PE | 23.6 |
📊 ONGC appears to be a good candidate for swing trading. The fundamentals are strong with low valuation (P/E 10.4 vs industry 23.6), high dividend yield (4.55%), and solid ROCE/ROE. Technical indicators show neutral momentum (RSI 50.5, MACD near zero), with the stock trading slightly above both 50 DMA and 200 DMA, suggesting stability. The optimal entry price would be near ₹260–₹265, close to the 50 DMA support. If already holding, consider exiting around ₹285–₹290, near the recent high and resistance zone.
✅ Positive
- Attractive valuation: P/E 10.4 is well below industry average.
- Strong fundamentals: ROCE 14.8% and ROE 11.4% indicate efficient capital use.
- High dividend yield (4.55%) provides steady income.
- Low debt-to-equity ratio (0.10) shows financial strength.
- FII holdings increased (+0.45%), reflecting foreign investor confidence.
⚠️ Limitation
- Quarterly PAT declined from ₹9,848 Cr. to ₹8,372 Cr., showing short-term weakness.
- PEG ratio (-2.53) indicates limited growth prospects relative to earnings.
- DII holdings decreased (-0.27%), showing reduced domestic institutional support.
📉 Company Negative News
- Recent quarterly profit decline raises concerns about earnings momentum.
- Energy sector volatility may impact near-term performance.
📈 Company Positive News
- Strong dividend yield supports investor interest.
- Valuation remains attractive compared to industry peers.
- Stable technicals with price above both 50 DMA and 200 DMA.
🏭 Industry
- Industry P/E at 23.6 is significantly higher than ONGC’s 10.4, making ONGC undervalued.
- Oil & gas sector benefits from global energy demand, though subject to commodity price swings.
📝 Conclusion
ONGC is a strong swing trade candidate with solid fundamentals, high dividend yield, and undervaluation compared to peers. Entry is advisable near ₹260–₹265, with exit around ₹285–₹290 if already holding. Long-term investors may continue to benefit from its strong cash flows and dividend policy, while short-term traders should monitor global energy price trends for momentum shifts.