Technical Call: Oil and Natural Gas Corporation – BUY

Long-term investors can buy Oil and Natural Gas Corporation (ONGC) (₹286) at current levels. The stock has been in a strong uptrend since April 2020. The price action from July 2015 to November 2023 indicates an inverted head and shoulder reversal pattern. This is a bullish pattern. The strong surge since December last year has confirmed this pattern thereby turning the outlook bullish. Strong support is in the broad ₹210-₹180 region. The neckline support of the inverted head and shoulder pattern is also poised in this region. As such a fall below ₹180 will be very difficult. So, any sharp correction, if seen, will be limited to this support zone. Also, such corrections will be a good opportunity to accumulate this stock. Moving average cross overs on the chart also strengthens the bullish case. ONGC share price has potential to target ₹480 over the next two years. Long-term investors can buy ONGC now at ₹286. Accumulate on dips at ₹230. Keep a stop-loss at ₹170. Trail the stop-loss up to ₹320 when the price goes up to ₹380. Move the stop-loss further up to ₹390