5 Things You MUST Know Before Investing in ONGC

5 Things You MUST Know Before Investing in ONGC  Jefferies has issued an updated report, predicting a 58% upside for ONGC and maintaining its buy recommendation, stating that the recent decline in ONGC’s stock price has been overdone. The expected increase in production from the KG basin in Q4FY25 and Q1FY26 is seen as a positive catalyst for the stock. Meanwhile, Oil India’s shares have surged by 5%, and ONGC’s shares are also higher by 2% as crude oil prices continue to rise.

Both Brent and Nymex crude have recently surpassed their 100-day moving averages, breaking out of a range that had held since mid-October. Additionally, there are reports suggesting that U.S. President Joe Biden might be on the verge of issuing a permanent ban on new offshore oil and gas development, a move that could complicate Donald Trump’s energy policies if he assumes office. Crude oil prices are on track to achieve a second consecutive week of gains.

Shares of Oil India and ONGC rose significantly on January 3, 2025, fueled by a surge in crude oil prices, which hit their highest levels in over two months. This rally was driven by expectations that global policy support would boost economic recovery and fuel demand, benefiting upstream companies. Despite the rise in stock prices, both companies are expected to report lower operating profits for Q3 due to a decline in crude oil realisations, even though gas prices have remained stable.

For Q3, ONGC’s oil production is predicted to fall 4.7% year-on-year, while gas production is expected to remain flat. Oil India’s oil production is forecasted to be flat, with a slight increase of 0.5% in gas production. YES Securities projects net crude oil realisations of $73.2 per barrel for ONGC and $73.7 per barrel for Oil India, with both companies seeing flat or declining crude oil volumes. However, gas volumes for both are expected to show slight increases.

Crude oil futures continued their upward momentum, with Brent crude reaching $76.15 per barrel and West Texas Intermediate (WTI) crude at $73.38 per barrel, supporting the positive sentiment in the sector. Jefferies also boosted ONGC’s prospects, giving it a target price of Rs 375, suggesting that the recent stock correction was overdone.

5 Things You MUST Know Before Investing in ONGC  ONGC’s share price has been experiencing a positive surge today, January 3, 2025, with an increase of 4.88%, trading at ₹258 per share. The stock opened at ₹237.65 and reached a high of ₹259.6 during the session, indicating volatility. Its market capitalization stands at ₹309,562.9 crore, and it has seen a 52-week high of ₹344.6 and a low of ₹203.8. Trading volume is notably higher, up 113.02% compared to yesterday, which suggests a potentially sustained upward trend.

The stock has surpassed key resistance levels, suggesting a bullish trend, but traders are advised to watch for reversals around ₹259.2. Analysts have a consensus rating of “Buy,” with a median price target of ₹315, reflecting a 28.05% potential upside.

5 Things You MUST Know Before Investing in ONGC  ONGC’s share price on January 3, 2025, showed strong bullish momentum, surpassing the first resistance level of ₹249.5 and the second at ₹252.95. As the stock nears the critical resistance of ₹259.2, traders are advised to closely monitor its movements. A breakout above ₹259.2 could indicate strong buying interest, potentially driving the stock higher. However, reversals at this level are also possible, so caution is recommended. The stock’s performance highlights strong investor confidence, making it a key focus for traders in the energy sector on both the NSE and BSE.

5 Things You MUST Know Before Investing in ONGC  Shares of Oil and Natural Gas Corporation (ONGC) and Oil India rose by 4% on January 3, 2025, despite a weak market, following a surge in crude oil prices. Brent crude futures surpassed $76 per barrel, while WTI Crude was around $73.4 per barrel, both showing a slight increase. The price hike is attributed to optimism about China’s economic growth and potential global government policies to stimulate economic activity and fuel demand.

ONGC’s share price reached ₹258.27, up 4.96% for the day, amid rising oil prices. The sector outlook remains neutral, with analysts noting that the financial health of upstream oil companies will continue to depend on crude oil prices. Despite a drop in prices from their peak in August 2024, the overall margins for upstream companies are expected to remain healthy due to ongoing production and the removal of special excise on crude production. The future of oil prices is still tied to global geopolitical factors and Opec+ production decisions.