Nirmal Bang Research has suggested investors to 'sell' ONGC stock as there are full chances of a downward trend in this stock in the coming days.

According to report, investors can sell the stock with a strict stop loss of Rs 880 to achieve a target that lies between Rs 790-740.

Today (April 17), the stock opened at Rs 860, as against its last closure at Rs 851.75 on the Bombay Stock Exchange (BSE) on Thursday (Feb 16). Current EPS & P/E ratio stood at 76.03 and 11.47 respectively. The share price has seen a 52-week high of Rs 1124 and a low of Rs 538.10 on BSE.

The report also suggested that if the stock fell below Rs 730, it may see more weakness. So the investors must sell ONGC stock. After selling the stock, the interested investors can purchase the stock again at a low price, for medium term prospective to make good profits.

Lakshmi Mittal, the NRI billionaire is keen on selling half of his stake in a Kazakhstan oil field to state-run ONGC Videsh (OVL), the global investment division of ONGC in order to defeat the harsh financial constraint affecting his planned growth in energy segment.

ONGC has decided to borrow around Rs 200 billion to support projects by units as the worldwide recession and falling inflation lower costs.

Approximately Rs 80 billion will be expended on discovery for oil and gas. The loans comprised Rs 88 billion to be lifted in the next 2-3 months for a planned chemical venture in the western state of Gujarat.

Moreover, ONGC has held back a decision of renting a drilling rig from RIL, even as Chinese and European companies have came out as suitors for the ultra deepsea drillship, reports Economic Times.

ONGC was in discussion with Reliance for the past few months for hiring DD-KG-1 ultra deepsea drillship for four years at USD 510,000 per day, the same rate at which Reliance had taken the rigs from Transocean on a five-year lease.

But in the meanwhile, CNOOC of China and ENI of Italy too approached Reliance offering between USD 560,000 and USD 570,000 per day for the same rig.