ONGC - Are Intelligent Investors entering the Stock ?
The Nifty PSE index in India has delivered a remarkable return of approximately 160% over the past two years. Many of the stocks within this index have already provided substantial returns, with ONGC notably achieving a return of around 150% in the last two years. Following such impressive performance, the question that naturally arises is: how much further can these stocks go?
When we analyze ONGC at its current levels, several key events are unfolding:
1. Elliott Waves - The stock is currently in the major 3rd wave, as indicated by wave counts and its wave personality.
2. Major Breakout - The stock has broken out of a 10-year resistance zone after a period of strong consolidation just before the breakout.
3. Volume - Trading volumes have been significantly higher (almost three times the average volume) for three to four consecutive weeks, suggesting that smart money has entered the stock at this level.
4. Valuation Outlook - The current PE ratio of the stock stands at 8.3, while the industry average PE is 21.1.
All these factors point towards a high probability of achieving another 50% to 60% upside to reach wave 3 targets.
In terms of trading strategy, it is likely that the stock will enter a consolidation phase after the breakout or may move upwards before retracing to retest the breakout level. One approach could be to initiate a 30% position at this stage and consider adding the remaining 70% once the retest occurs or based on the future price developments, which I will continue to monitor and update accordingly.
The key levels are clearly marked on the chart for reference
Disclaimer: Please note that the information presented in this analysis is intended for educational purposes only. It is highly recommended to seek advice from a financial advisor before making any investment decisions. I cannot be held accountable for any financial losses that may arise
When we analyze ONGC at its current levels, several key events are unfolding:
1. Elliott Waves - The stock is currently in the major 3rd wave, as indicated by wave counts and its wave personality.
2. Major Breakout - The stock has broken out of a 10-year resistance zone after a period of strong consolidation just before the breakout.
3. Volume - Trading volumes have been significantly higher (almost three times the average volume) for three to four consecutive weeks, suggesting that smart money has entered the stock at this level.
4. Valuation Outlook - The current PE ratio of the stock stands at 8.3, while the industry average PE is 21.1.
All these factors point towards a high probability of achieving another 50% to 60% upside to reach wave 3 targets.
In terms of trading strategy, it is likely that the stock will enter a consolidation phase after the breakout or may move upwards before retracing to retest the breakout level. One approach could be to initiate a 30% position at this stage and consider adding the remaining 70% once the retest occurs or based on the future price developments, which I will continue to monitor and update accordingly.
The key levels are clearly marked on the chart for reference
Disclaimer: Please note that the information presented in this analysis is intended for educational purposes only. It is highly recommended to seek advice from a financial advisor before making any investment decisions. I cannot be held accountable for any financial losses that may arise
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.