ONGC - Further fall possible - Windfall TAX & Falling Crude

tradingp3 Updated   
It appears that fall in ONGC will continue..

On 1st July, it was announced that taxes will be imposed on the export of petrol, diesel, and jet fuel shipped overseas by Indian companies. ONGC went down more than 15-17% within two trading sessions following this announcement. FYI- Reliance also saw more than 7-8% fall for the same reason.

There is huge Crude sell of globally - it has fallen more than 11% on 5th July. ONGC will see the impact of this as well on top of Winfall TAX.

On a chart, ONGC has broken the support trendline (weekly).. immediately heavy sell off after this. ONGC chart is also an example of failing inverse head & shoulder pattern. Also heavy call writing at 140 following 130 & 135 levels which will act as resistance for month of July.

Currently it's trading at 125, next support is at 117 and then 108 & 97. Breaking this could take it up to 86 (strong support & fib level) in near future.

LTP - 125, 117- S1, 108 - S2, 97 - S3.. 86 is a major support as per chart pattern.

Buying stocks at 108, 97 or 86 would be good idea for a long term investor though!
Windfall TAX discount.. ONGC on upward journey now.


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