ONGC Promises Upside, Says Jefferies; Oil India Gains as Crude Breaches 100-DMA

https://preview.redd.it/e3irm1ev7sae1.jpg?width=1920&format=pjpg&auto=webp&s=4139ccc35a818f949751c69d295e42ebf1cb3671 Jefferies has issued a fresh note reiterating its buy recommendation for ONGC, projecting a potential 58% upside. The firm believes the recent correction in ONGC's shares, which seemed excessive, presents a recovery opportunity. Let's see what the chart is saying : ONGC has recently corrected by around 36% but has shown significant upward momentum over the past two days. The price is currently positioned at the Fibonacci golden zone, a critical level indicating a possible trend reversal. Moreover, a clear RSI divergence on the daily time frame adds to the bullish sentiment. The stock has successfully closed above the 40 EMA and 20 SMA on the daily chart, signaling positive momentum. However, for a decisive move upward, ONGC needs to break through the key resistance level at ₹267, coinciding with the 40-week EMA. The Rohit Momentum Indicator (RMI) supports this outlook, with a new buy signal on the weekly time frame and continued buy mode on the daily chart. A close above ₹267 could pave the way for a strong upward rally.