ONGC shares are showing strength on the stock market on April 15, a day when the BSE Sensex is down by 500 points at 10:45 am. ONGC shares have surged by 3.63 percent, trading at Rs 275 per share.
The rise in ONGC shares alone is responsible for contributing 200 points to the recovery of the BSE Oil & Gas index. Despite a weak start, the index has bounced back by over 1,000 points from its low point of the day. Currently, it is trading near the 28,400 levels, with notable contributions from IGL, ONGC, GAIL, Linde India, and Petronet LNG.
In the derivative segment, ONGC is one of the most actively traded counters, with significant activity observed in the 270 strike price CE and 280 strike price CE options. Analyst Darpan Patil from Rupic Consultancy suggests that ONGC is nearing its multiyear breakout point from 2014.
The rally in ONGC shares follows a ‘buy’ recommendation initiated by Jefferies, with a target price of Rs 390 per share. According to Jefferies, ONGC shares are currently trading at a substantial discount compared to the benchmark Nifty, which is not adequately reflected in its valuation.
While most sectoral indices are trading in the red, the BSE Oil & Gas index stands out with a gain of 0.77 percent. This index has been among the top performers in 2024, showing an increase of over 22 percent year-to-date. Since November 2023, the BSE Oil & Gas index has demonstrated strong outperformance compared to the BSE Sensex, rising by 55 percent while the Sensex gained by 15 percent.
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