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!
Comment
⋅
Windfall TAX discount.. ONGC on upward journey now.