Buy ONGC for target of Rs 285: IIFL

MUMBAI: IIFL is of the view that ONGC has signaled breakout from ‘falling wedge’ and closed above key resistance levels. It has advised to buy the stock for target of Rs 285.

“After hitting intermediate bottom at Rs 260, ONGC has signaled breakout from ‘falling wedge’ and closed above key resistance levels of Rs 271. As the amplitude of the pattern corresponds to Rs 30, stock is expected to post a good rally towards Rs 295 in the near term.

The daily RSI also has given a bullish crossover which supports buying argument in the counter. The 50DMA is placed at Rs 294 which should turn out short tem target in the stock. We advise buying stock in the range of Rs 269-271 with stop loss of Rs 264 for target of Rs 285,” the report said .

Note: Trading idea valid for time-period of 7 days.