Oil & Natural Gas Corporation Limited (ONGC) Stock - Complete Technical Analysis - Sep 16, 2024

ONGC Stock Analysis: Is It Time to Buy the Dip Key Support & Resistance Levels

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investing in stocks involves risks, and it's essential to conduct thorough research or consult with a financial advisor before making investment decisions.

Oil & Natural Gas Corporation Limited (ONGC) is currently trading at 292, showing a decline from its recent high of 345, while still maintaining significant gains from its 52-week low of 179.90. The stock is demonstrating a weak momentum, reflected by indicators such as a low MACD, indicating a bearish trend. The RSI is hovering around 36, suggesting that the stock is nearing oversold territory, which could signal a potential buying opportunity if other factors align.

Technically, ONGC is under pressure, as it is trading below key moving averages. The 10-day and 20-day EMAs are above the current price, indicating that short-term trends are negative. The ADX is relatively low, showing that the stock is in a weak trend, with no strong directional movement. Stochastic indicators show a low reading, further confirming a potential oversold situation, but traders should wait for confirmation before making any decisions.

Support for the stock can be found around 287, while immediate resistance is around 308. If the stock can breach 308, it may attempt to reach higher levels, but strong resistance around 314 needs to be watched. Key moving averages like the 50-day EMA and 200-day EMA provide long-term insight, and the stock is currently positioned above the 200-day EMA, indicating long-term strength, though short-term weakness persists.

An Inside Candle pattern was identified on 13th September 2024, indicating consolidation between the levels of 297.25 and 291.05. This suggests that the stock may see some sideways movement in the near term before a breakout or breakdown occurs.

With a strong dividend yield of 4.19%, ONGC remains attractive to long-term investors, but technical indicators suggest caution for short-term traders until clearer signals emerge.