Oil and Natural Gas Corporation Limited (ONGC), one of India’s largest oil and gas producers, continues to draw investor attention with its attractive valuation and dividend yield of 4.83%. Currently trading at ₹248.45, the stock is near its 52-week low of ₹204.50, reflecting a significant upside potential when compared to its 52-week high of ₹345.00. This article dives into ONGC’s performance metrics, technical analysis insights, and its position against competitors like Reliance Industries and Oil India Ltd. Whether you're a seasoned trader or a long-term investor, this comprehensive overview will help you navigate ONGC's investment prospects.

ONGC Stock Overview

Recent Analyst Opinions on ONGC

Brokerage Insights

Jefferies reiterated 'buy' on the company and cut the target to Rs 375 per share from Rs 410 apiece earlier. Special additional excise duty capped crude realisation from legacy fields that account for 95% of standalone production at $75 per barrel earlier. "Consequently, earnings impact is limited to 2% at current crude prices."

Management remains confident of ramping up production from current levels, achieving 5-6% CAGR over fiscal 2025-27, led by KG basin, Jefferies said. The brokerage expects KG production to contribute 10% to fiscal 2026 consolidated Ebitda, with better realisations more than offsetting higher operational expenditure.

Motilal Oswal: Recently revised its target price for ONGC to ₹285, citing attractive valuation and expectations of steady crude oil prices.
ICICI Securities: Recommends a “Buy” with a target price of ₹300, emphasizing strong cash flow and its commitment to high dividend payouts.

Technical Analysis: Candlestick Patterns

Candlestick Observations

ONGC’s daily chart shows the formation of a "Hammer" candlestick near the ₹248 support level, indicating potential reversal and buying interest.
The preceding downtrend confirms the pattern's reliability, suggesting a likely bounce back.
Actionable Insight
If ONGC sustains above ₹250 with strong volumes, traders could consider initiating long positions with a target of ₹262 in the near term.

Technical Analysis: Fibonacci Retracement Levels

Using the 52-week high of ₹345 and 52-week low of ₹204.50, the Fibonacci levels are calculated as follows:

Actionable Insight
A break above ₹264.40 (38.2% retracement) could push the stock toward ₹285.10, while a dip below ₹238.80 might lead to further correction.

Technical Analysis: Support and Resistance Levels

Support Levels: ₹248, ₹238
Resistance Levels: ₹262, ₹275
Actionable Insight
Traders should monitor the ₹262 resistance closely. Breaching this level with volume might signal the start of an upward trend toward ₹275.

Competitive Edge of ONGC
ONGC’s lower P/E ratio and higher dividend yield position it as a value stock compared to Reliance Industries. While Oil India offers similar appeal, ONGC’s larger market cap and extensive reserves make it a dominant player.

Investment Outlook for ONGC

With strong fundamentals, attractive valuation, and improving technical indicators, ONGC remains a compelling option for value investors.

Short-term traders could target ₹262 and ₹275 based on technical analysis.
Long-term investors might benefit from holding the stock for its consistent dividend payouts and potential upside toward ₹300, as suggested by analysts.