ONGC, The Maharatna with second largest MARKET CAP in PSE, is trading at good valuation. Our strategy for trading it as follows:-
Enter ONGC at CMP: 100
Short term target 112.5 (within 5-8 trading sessions) 12.5%
Long term target 130 (within 2 months)
The SL can be placed at 89.5
Monthly, weekly and daily charts present a clear bullish trend while forming the Inverse Head and shoulder pattern. Lately the stock showed a good upmove with a long candle breaching the monthly resistance and reaching 4300 level.
Entry can be made for a Long position at current price: 4300-4320, with target of 4750, and SL of 3900.
Consolidation area for NIFTY 50
further direction will be determined by the side it breaks with good volume and sustains.
Option sellers can play in this region.
ONGC, fundamentally strong company..
CMP: 192.4
RSI :55
It has made a channel breakout in the daily chart pattern..
It might go upto 200+
target 1 : 195
target 2 : 200
target 3 : 203+
Apparently, Risk Reward ratio is also suitable....
Note: Do your own study before making any positions...
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