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ONGC - Technical Analysis with Chart Patterns & Indicators

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Rating: 4.2

Last Updated Time : 24 May 26, 10:34 pm

Technical Rating: 4.2

Stock Code ONGC Market Cap 3,64,828 Cr. Current Price 290 ₹ High / Low 308 ₹
Stock P/E 11.2 Book Value 267 ₹ Dividend Yield 4.22 % ROCE 14.8 %
ROE 11.4 % Face Value 5.00 ₹ DMA 50 285 ₹ DMA 200 264 ₹
Chg in FII Hold 0.54 % Chg in DII Hold -0.39 % PAT Qtr 8,372 Cr. PAT Prev Qtr 9,848 Cr.
RSI 49.6 MACD 3.17 Volume 1,20,37,524 Avg Vol 1Wk 1,21,05,263
Low price 229 ₹ High price 308 ₹ PEG Ratio -2.72 Debt to equity 0.10
52w Index 77.8 % Qtr Profit Var 1.60 % EPS 26.0 ₹ Industry PE 28.6

📊 Chart Analysis: ONGC trades at ₹290, above both its 50 DMA (₹285) and 200 DMA (₹264), showing strong technical positioning. RSI at 49.6 is neutral, while MACD at 3.17 indicates a mild bullish crossover. Bollinger Bands suggest consolidation with moderate volatility. Current volume (1,20,37,524) is nearly equal to the weekly average (1,21,05,263), reflecting steady participation.

📈 Momentum Signals: Short-term momentum is positive, supported by price stability above both moving averages and a bullish MACD crossover. RSI neutrality suggests room for further upside without immediate overbought risk.

💹 Entry & Exit Zones:

  • Entry Zone: ₹285–₹295 (near 50 DMA support)
  • 📉 Stop-Loss: ₹275 (below key support)
  • 🚀 Exit Zone: ₹305–₹310 (next resistance zone)

🔎 Trend Status: The stock is currently trending upward with consolidation around ₹285–₹300. A breakout above ₹310 could accelerate bullish momentum, while a drop below ₹275 may weaken the trend.


Positive

  • 📌 Strong dividend yield at 4.22%, attractive for income investors.
  • 📌 Price above both 50 DMA and 200 DMA, showing technical strength.
  • 📌 Low debt-to-equity ratio (0.10), indicating financial stability.
  • 📌 EPS at ₹26.0, reflecting solid earnings.

Limitation

  • ⚠️ PAT declined from ₹9,848 Cr. to ₹8,372 Cr. quarter-on-quarter.
  • ⚠️ PEG ratio (-2.72) indicates weak growth relative to valuation.
  • ⚠️ ROE (11.4%) is moderate compared to industry leaders.

Company Negative News

  • ❌ DII holding decreased (-0.39%), showing reduced domestic institutional confidence.

Company Positive News

  • ✅ FII holding increased (+0.54%), reflecting foreign investor support.
  • ✅ Quarterly profit variation improved (+1.60%), showing stability despite prior decline.

Industry

  • 🏭 Industry PE at 28.6, significantly higher than ONGC’s P/E (11.2), suggesting undervaluation.
  • 🏭 Energy sector demand remains strong, supported by global oil and gas consumption.

Conclusion

📌 ONGC is trending upward with strong fundamentals and attractive valuation. Entry near ₹285–₹295 offers favorable risk-reward, with resistance at ₹305–₹310 as the next target. Long-term investors may benefit from its high dividend yield and undervaluation relative to industry, while short-term traders can capitalize on momentum-driven moves.

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