rajveersco

ONGC: Breakout from Accumulation Zone

Long
NSE:ONGC   OIL & NATURAL GAS
ONGC: 2 break-out have observed in the up-trend. The major one is a flag pattern that confirms the rally to the next stop of @140 nearly can achieve the target of 13% .

Points to be Note (Technical + Fundamental)
1. Stock is in an uptrend with Fibonacci levels ranging b/w 0.5 to 0.3 fast trend.
2. Relative strength is strong for the month.
3. There have been two breakouts that will lead the rally in the next few days
4. Sales have been soaring by 22% and the correlation to sales vs profit is decreased by 82% as compare to last quarter
5. Investing activities have increased too... nearly double from last year.
6. P/E is fairly decent 15.6 above 10 but the company deserves that.
7. ROE is 7% as compared to its peers having 10-13.5%.
8. D/E is half to industry levels.

Let me know in the comment section. What's your view on this

Comments

entered at 120.5 for target of 144 with slop loss of 119 closing basis
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PE & RoE is vey less. Any stock shud be Above 15 atleast.
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rajveersco PratikBhatt
@PratikBhatt, ONGC has a better edge over all of its peer in the drilling industry, ROE is less but for the long term and short term you can't rely on OIL India which has only a 3% sales YOY as compare to ONGC
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