Oil and Natural Gas Corporation (ONGC) share price touched a 52-week high of Rs 139.90, rising 3 percent intraday on September 27 after foreign research house JPMorgan maintained a buy rating on the stock for a target at Rs 190 per share.
The company remains best positioned in the entire gas/coal/oil price surge, the research house said.
The coal & gas are in an upward spiral, with peak winter heating demand still ahead of us, however, there is an upside risk to brent prices on potential gas-to-oil switching.
The gas realisations would increase by at least a $1/mmBtu each in October & April resets.
"This Maharatna company failed to live up to expectations for the past seven years. Even in the ongoing bull run, it did not participate much. But now, with crude oil prices trading at a three-year high, ONGC is showing some strength," said Sameet Chavan, chief analyst - technical and derivatives at Angel Broking.
"Last week, ONGC shares surpassed the key 200-day simple moving average on the weekly timeframe chart for the first time since May 2019."
"In addition, the average directional index (14) indicator has started displaying an upward trajectory. One can look to buy this stock for a near-term target of Rs 149. The stop-loss can be placed at Rs 129.80," Sameet Chavan added.