Oil & Natural Gas Corporation Limited (ONGC) Stock - Complete Technical Analysis - Dec 12, 2024

Detailed Technical Analysis of ONGC Stock Key Support & Resistance Levels Trade Insights

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. In this detailed technical analysis of ONGC, we will explore the stocks price trends, support and resistance levels, and key indicators to help traders make informed decisions.

At a current price of 254.05, ONGC is significantly below its 52-week high of 345, trading 26.36% lower, but has recovered 32.28% from its 52-week low of 192.05. This highlights the stocks recent upward movement from its lows but a bearish shift from its highs. The short-term price action is characterized by fluctuations between 253 and 258, showing consolidation with no clear breakout in sight.

Moving to key technical indicators, the stock is underperforming in the short term, with the RSI standing at 41.63, indicating slight bearishness but no extreme oversold conditions. The MACD is also in negative territory, confirming downward pressure. The stock is currently below the 10-day and 20-day EMAs, which further emphasizes bearish sentiment in the short term. However, longer-term EMAs such as the 100-day and 200-day are still above current prices, suggesting a bullish trend in the longer run.

In terms of volatility, the ATR is showing an uptick, pointing to increasing market uncertainty. Larger price swings could be on the horizon, indicating the need for caution in both short-term trading and long-term positioning.

For support, the levels around 253-254 are critical. A break below these levels could push the stock further down to 240-245. On the resistance front, the stock faces immediate pressure around 258-260, and a breakthrough above this zone could open doors for a rally towards the 267-270 range. Given these factors, ONGC is currently in a consolidation phase, and traders should monitor for either a breakout above resistance or a failure to hold support for potential trading opportunities.

Long-term investors may find comfort in the companys strong fundamentals, including a P/E ratio of 7.86, a healthy ROE of 14.3%, and a dividend yield of 4.82%. These metrics suggest that ONGC is fundamentally sound, but short-term traders should be prepared for potential volatility as the stock navigates through this range-bound phase.