Buy ONGC

Buy ONGC

The stock has corrected significantly in the last few months and has reached around its support area of 215 – 220 zone in the monthly chart. While, on the weekly chart, we are observing a formation of a bullish harmonic pattern called ‘Bullish Bat’ pattern, whose Potential Reversal Zone (PRZ) is placed at 220 – 226 levels. On oscillator front, the ‘RSI- smoothened’ is giving positive crossover with its average from the oversold territory in the daily chart, indicating reversal on cards. Looking at the current chart structure, we advise traders to buy this stock at current levels and on declines to ` 232 for a target of ` 252 in coming 14 to 21 trading sessions. The stop loss for this trade set up can be kept at ` 224.