Oil & Natural Gas Corporation Limited (ONGC) Stock - Complete Technical Analysis - Nov 07, 2024

ONGC Stock Analysis: Is It Time to Buy or Sell Bearish Signals and Key Support Levels Explained

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. The current price of ONGC at 265.20 shows a bearish trend, with technical indicators confirming potential short-term weakness. The stock's price-to-earnings ratio is at a healthy 8.57, which makes it attractive to value investors. The strong ROE and ROCE values highlight that ONGC is generating returns efficiently, but technicals are suggesting caution.

The formation of a Bearish Engulfing and an Evening Star pattern indicates that the stock may face selling pressure. The RSI is in oversold territory, which could signal a potential reversal, but traders should wait for confirmation from price action. The ADX value indicates a strong trend, so monitoring the strength of the bearish momentum is crucial.

Support is seen around 247-248, with a further breakdown leading to the next levels near 229. On the upside, resistance is at the 50-day and 100-day moving averages, around 284.89 and 288.35, respectively. Keep in mind that ONGC is currently trading 23% below its 52-week high, and volatility seems to be on the rise, making this stock one to watch closely for price swings.