ONGC moved lower as indicated in this column last week. But the decline halted near the support at Rs 600. The stock has key long-term supports at Rs 620 and below that at Rs 550. Though the lower support was tested on October 27, the intra-day recovery made the stock close above Rs 600 on that day. A long-term trough is possible for the stock in the band between Rs 550 and Rs 600. The medium-term view will, however, turn positive only on a close above Rs 900.

The stock can move higher to Rs 736 in the near-term. Short-term traders should watch out for a sharp reversal from this area. If this level is surpassed, the rally can extend to Rs 810.

— Lokeshwarri S.K.

© Copyright 2000 - 2009 The Hindu Business Line