ONGC, result based buying
Crude prices has been continuously rising, and the immediate benefactor is the natural gas. With tremendous pressure on energy global supply chains gas companies are struggling to fulfil the outgoing demand. ONGC, which has also seen a hike in gas prices have reported record profits for this quarter.
I have been bullish on ONGC since 110/- levels. And the reasons are:
1. Shift towards green energy resources. (makes gas and immediate substitute for both domestic and commercial purposes)
2. European winters and Chinese intervention. (global pressure on gas prices)
3. improved administration of the company.
4. consistent increase in both onshore and offshore revenues
Technically after breaking out from a very long parallel channel, it has retested the crucial and psychological level of ₹150/-. With CMP 154, the stock should again touch the recent highs of ₹172/-.
It is also giving a dividend of ₹5.5/- which makes it more attractive even at higher valuations.
One can buy with an SL of ₹145/- (result might make stock volatile) for Target of ₹170/- and above.
I have been bullish on ONGC since 110/- levels. And the reasons are:
1. Shift towards green energy resources. (makes gas and immediate substitute for both domestic and commercial purposes)
2. European winters and Chinese intervention. (global pressure on gas prices)
3. improved administration of the company.
4. consistent increase in both onshore and offshore revenues
Technically after breaking out from a very long parallel channel, it has retested the crucial and psychological level of ₹150/-. With CMP 154, the stock should again touch the recent highs of ₹172/-.
It is also giving a dividend of ₹5.5/- which makes it more attractive even at higher valuations.
One can buy with an SL of ₹145/- (result might make stock volatile) for Target of ₹170/- and above.
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