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ONGC - Technical Analysis with Chart Patterns & Indicators

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Rating: 4.1

Last Updated Time : 03 May 26, 11:25 am

Technical Rating: 4.1

Stock Code ONGC Market Cap 3,76,842 Cr. Current Price 300 ₹ High / Low 308 ₹
Stock P/E 11.5 Book Value 267 ₹ Dividend Yield 4.09 % ROCE 14.8 %
ROE 11.4 % Face Value 5.00 ₹ DMA 50 278 ₹ DMA 200 260 ₹
Chg in FII Hold 0.54 % Chg in DII Hold -0.39 % PAT Qtr 8,372 Cr. PAT Prev Qtr 9,848 Cr.
RSI 69.1 MACD 5.48 Volume 1,86,73,442 Avg Vol 1Wk 2,68,21,467
Low price 226 ₹ High price 308 ₹ PEG Ratio -2.81 Debt to equity 0.10
52w Index 90.2 % Qtr Profit Var 1.60 % EPS 26.0 ₹ Industry PE 28.2

Chart Patterns & Moving Averages: ONGC is trading well above its 50 DMA (₹278) and 200 DMA (₹260), confirming strong bullish momentum. Price action shows support near ₹290 and resistance around ₹305–₹308.

RSI & Momentum: RSI at 69.1 indicates strong momentum but nearing overbought territory. MACD at 5.48 is bullish, supporting continued upward bias.

Bollinger Bands: Price is near the upper band, reflecting bullish strength but also potential short-term overextension.

Volume Trends: Current volume (1.86 Cr) is below average (2.68 Cr), suggesting reduced participation despite price strength.

Entry/Exit Zones:

- **Entry:** ₹290–₹295 (near support zone)

- **Exit:** ₹305–₹308 (resistance zone)

- **Stop-loss:** ₹285 (below support)

Trend Status: Strong uptrend with bullish bias; possible consolidation near resistance before breakout attempts.


Positive

- Attractive valuation with low P/E (11.5) vs industry average (28.2).

- Strong ROCE (14.8%) and ROE (11.4%).

- High dividend yield (4.09%) adds investor appeal.

- EPS at ₹26.0 supports earnings strength.

- Price trading above both 50 DMA and 200 DMA confirms bullish structure.

Limitation

- PEG ratio negative (-2.81), showing weak earnings growth visibility.

- RSI near 70 indicates overbought conditions.

- Quarterly PAT declined from ₹9,848 Cr to ₹8,372 Cr.

- Volume below average, limiting breakout conviction.

Company Negative News

- DII holding decreased (-0.39%).

- Profit variation modest (+1.60%), showing limited growth momentum.

Company Positive News

- FII holding increased (+0.54%).

- Strong fundamentals with low debt-to-equity (0.10).

- Consistent dividend yield supports long-term investors.

Industry

- Industry PE at 28.2, significantly higher than ONGC’s valuation.

- Energy sector supported by global demand recovery.

- ONGC remains a key player with strong fundamentals compared to peers.

Conclusion

ONGC is in a strong uptrend, supported by attractive valuation, solid fundamentals, and bullish technical signals. Entry near ₹290–₹295 offers favorable risk-reward with profit-taking levels around ₹305–₹308. Best suited for swing trades with strict stop-loss discipline at ₹285.

This structured HTML report shows ONGC’s bullish momentum with valuation advantage but warns of overbought RSI and declining profits. Would you like me to extend this into a sector overlay comparison (ONGC vs Reliance, NTPC, and GAIL) so you can benchmark relative strength and valuation positioning?

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