ONGC promises upside, says Jefferies; Oil India higher as crude goes past 100-DMA

Prices of both Brent as well as Nymex crude have risen past their 100-day moving average, which has led to the breakout from the roughly $6 range seen since mid-October.

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26 Aug, 2025 12:21

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Shares of ONGC and Oil India were sharply higher in early trade on January 3, after crude oil rally entered the fourth day, breaking out of a range that had held up for months. Prices of both Brent as well as Nymex crude have risen past their 100-day moving average, which has led to the breakout from the roughly $6 range seen since mid-October.

Oil India shares are higher up 5% as of 10:40am, while shares of ONGC have shed early gains but are still up by 2%.

Jefferies, meanwhile, has issued a fresh note that sees 58% upside in ONGC, and has reiterated its buy call. The recent correction in the shares of ONGC seem to be overdone, said Jefferies. The anticipated ramp up of KG basin production in Q4FY25 and Q1FY26 is another trigger supporting the price action.

In related development, Bloomberg News reported citing people familiar with the development that US President Joe Biden may be close to issuing a decree to permanently ban new offshore oil and gas development off some shores. If this materialises, the move will ensure a tough-to-revoke protection that may complicate President-elect Donald Trump’s electoral pitch to ramp up domestic energy production.

Crude oil is also poised for a second week of gains.