ONGC could head up to 230: Ashwani Gujral

In a chat with ET Now, Ashwani Gujral, Chief Market Strategist, ashwanigujral.com, talks about ONGC.

ET Now: On the charts, are you seeing that there is pressure building up on ONGC and also in light of what’s happening with crude oil, a take on the oil marketing companies?

Ashwani Gujral: Yeah, oil marketing can go higher, although today even oil marketing has fallen. ONGC could head up to 230. What I am observing is that as commodities are coming down, probably people are getting into banking because the Banking Nifty has just a double digit loss. This is an index, which moves 300-400 points if a comparable 100 point Nifty move happens, so maybe people are taking on risk on the rate side because this is a well regulated sector, no inquiries here, etc., so banking is kind of becoming a defensive, so while oil can still go down and Reliance and ONGC, all these commodity stocks can still go down, probably the move is happening into banking, large-cap banks. A lot of them are in positive, so that’s what people should be looking at. If 5200 in fact holds on, next move maybe lead by banking.