Ram Navami Pick: Maharatna PSU Stock Gets Buy Call By Sumeet Bagadia For TP 310/325

With a 71% participation in domestic production, Maharatna Oil and Natural Gas Corporation (ONGC) is the largest crude oil and natural gas company in India. Tuesday saw the ONGC shares reach a new 52-week high of Rs. 292.45 and end on the BSE with an upside gap of Rs. 1.18% at Rs. 283.05 following the initiation of a technical buy call on the PSU stock by Sumeet Bagadia, Executive Director of Choice Broking.

ONGC Share Price Target

Buy ONGC at Rs 279.40 and add up to Rs 275 for the target of Rs 310/325

ONGC is presently trading at Rs 279.4 and has recently broken out of an inverted head and shoulders pattern with significant volume, suggesting a potential reversal and a robust bullish trend. A breakout above 280 could drive the stock towards the 310 & 325 levels, with immediate resistance at Rs 294. On the downside, Rs 275 & 270 stand as critical support levels.

Moreover, following a prolonged correction, the stock has reversed from the support level. The Relative Strength Index (RSI) is currently at 59.84, indicating an upward trajectory and growing buying momentum. Taken together, these technical indicators suggest that ONGC has the potential to reach the 310 & 325 targets in the near term.

A prudent strategy would involve considering buying opportunities on dips around 275 levels. In summary, based on technical analysis and prevailing market conditions, ONGC appears to offer a promising buying opportunity for those targeting a 310 & 325 price objective. It is essential to implement prudent risk management strategies to navigate potential market fluctuations.

ONGC Financials

Oil and Natural Gas Corporation (ONGC) reported a 7.9% drop in its consolidated net profit from Rs 11,665 crore in the corresponding period of FY23 to Rs 10,748 crore in the third quarter (October-December) of FY24. In comparison to Q3FY23, when revenue from operations was Rs 1,69,213 crore, the PSU corporation recorded a 2.2 per cent decline to Rs 1,65,569 crore for the third quarter of FY24. The company's total production of crude oil dropped 3.3% YoY in the third quarter to 5.2 million metric tonnes (MMT) from 5.396 MMT in Q3FY23. In the meanwhile, ONGC produced 5.12 billion cubic metres (BCM) of natural gas in the third quarter of FY24 compared to 5.35 BCM in the same period last year, a 4.3% drop.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.