Oil & Natural Gas Corporation (ONGC) Share Price is going to be bullish from 300 to 345, add it to watch list immediately.
Oil and Natural Gas Corporation (ONGC) is experiencing notable fluctuations amid changing market dynamics. Investors are keenly observing the stock’s movements as it responds to various external factors, particularly the recent drop in global oil prices. Today, ONGC’s share price stands at ₹294.05, reflecting a decrease of 0.96% from its previous close of ₹314.40.
Main Points
Current Market Overview
The oil and gas sector is currently under pressure due to declining Brent crude prices, which have recently fallen below the crucial $70 per barrel mark. This decline is attributed to a combination of factors, including reduced demand forecasts from the Organization of the Petroleum Exporting Countries (OPEC) and increased production from non-OPEC countries. OPEC’s latest report indicates a downward revision in global oil demand growth for 2024 and 2025, which has raised concerns among investors regarding the future profitability of oil companies like ONGC.
Recent Performance and Technical Analysis
In recent trading sessions, ONGC’s stock has shown volatility. The share price has fluctuated between a low of ₹285.25 and a high of ₹302 within the last few days. Analysts suggest that the stock needs to break through its 50-day moving average to gain any significant upward momentum. Currently, it is trading below this average, indicating a bearish sentiment in the market.
The technical indicators present a mixed picture. ONGC’s earnings per share (EPS) stands at ₹35.08, with a price-to-earnings (P/E) ratio of approximately 8.88, which is relatively low compared to industry peers. This could suggest that the stock is undervalued, but it also raises concerns about the company’s ability to generate consistent profits in the face of declining oil prices.
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Institutional and Retail Investor Sentiment
Institutional interest in ONGC has seen some fluctuations, with recent reports indicating a slight increase in institutional holdings. This is considered a positive sign, as institutional investors typically conduct thorough analyses before making investment decisions. However, retail investor sentiment appears more cautious, especially given the recent price drop and the uncertain outlook for oil prices.
Analysts from Nuvama Institutional Equities have maintained a ‘reduce’ rating on ONGC, citing concerns over missed production targets and the potential for further declines in earnings per share due to lower oil prices. Their target price for ONGC is set at ₹232, indicating a potential downside of about 21% from the current trading levels.
Factors Influencing Future Price Action
Several factors will likely influence ONGC’s share price in the coming weeks:
- Global Oil Prices: The trajectory of Brent crude prices will be crucial. If prices stabilize or rebound, ONGC could see a positive impact on its stock price. Conversely, continued declines could lead to further downward pressure.
- Production Targets: ONGC’s ability to meet its production targets is under scrutiny. The company has struggled to achieve its production goals in recent years, which raises concerns about its operational efficiency and future profitability.
- Regulatory Environment: Changes in government policies regarding oil and gas exploration and production can significantly affect ONGC’s operations. Investors will need to stay informed about any regulatory changes that could impact the sector.
- Market Demand: The demand for oil and gas, particularly in emerging markets, will play a significant role in shaping ONGC’s future. As economies recover post-pandemic, increased demand could support higher prices and, in turn, benefit ONGC.
Disclaimer: The information given in this article is from investment experts and brokerage companies, they do not represent Local Haryana. Before taking any investment related decision, you must consult a certified expert.
