Oil and Natural Gas Corporation (ONGCC) share price closed Tuesday’s session down by 0.13%, reflecting a broader market decline driven by profit taking. Oil prices have risen by about 10% in the last five trading sessions, but took a breather on Monday, with benchmark Brent crude shedding 2.6% and WTI going down by 1.66%. Nonetheless, there remains an underlying investor interest in exposure to upstream energy stocks amid rising geopolitical risks in the Middle East.
The war between Israel and Iran has raised concerns over potential supply constraints, creating tailwinds for ONGC share price. Both countries have targeted each other’s oil and gas infrastructure, and there are emerging concerns that the conflict could spill over to the Strait of Hormuz. The 29 nautical miles stretch facilitates passage of about a third of the world’s sea-borne oil.
In terms of company-specific metrics, FY 2025 looks promising for ONGC share price, with increased output from new offshore fields like KG-DWN 98/2 set to be commissioned. Also, ONGC earns in US dollars, cushioning it from potential rupee depreciation caused by the recent 50 basis points interest rate cut by the Reserve Bank of India (RBI). Furthermore, brokers like JM Financial and ICICI Securities have recently reiterated BUY rating on ONGC share price, with their targets pointing to potential 15%-20% upside on the current price.
ONGC Share Price Prediction
The momentum on ONGC share price calls for further upside above the pivot mark at ₹251. The stock will likely meet initial resistance at ₹255. However, an extended control by the buyers could push the action higher and test the second barrier at ₹259.
On the other hand, going below ₹247 will favour the sellers to take control. That will likely see initial support come at ₹247. The upside narrative will be invalid if the price breaks below that level. Furthermore, an extended control by the buyers could push the price lower and test ₹243.
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