Trade Idea of The Day - Oil & Natural Gas Corporation Ltd Target Rs. 9 - Religare Broking Ltd
Oil & Natural Gas Corporation Ltd
BUY 28 JUL 240 PUT Entry Range 3 - 3.5 Target 9 Stop Loss 1
Rationale
1. ONGC witnessed a short-term relief bounce after finding support near the 200-WEMA zone. However, the stock prices continues to trade below its 20-DEMA and 50-DEMA, indicating that the broader trend remains bearish and the recent recovery appears to be merely a pullback within the prevailing downtrend.
2. On the weekly chart MACD Histogram remains in a negative trajectory, reflecting weak medium-term momentum. Additionally, the RSI has recovered from oversold territory but is still below the 50 mark, suggesting that buying strength remains insufficient to confirm a trend reversal.
3. Immediate resistance is placed around 250 mark, aligned with the 20-DEMA, followed by the 260 zone (50-DEMA). Any rebound towards these levels is likely to attract fresh selling pressure.
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