ONGC may further move up by 4-5% in short term: Prakash Diwan

In a chat with ET Now, Prakash Diwan, Chief Portfolio Strategist, Prakash Diwan's Wealth Circle, shares his views on ONGC.

ET Now: Should markets now get excited about ONGC? Finally after many years, they have discovered a large block of E&P asset.

Prakash Diwan: Definitely, we are going to see some sort of an upward reaction. This kind of news adds up to ONGC’s overall strength in terms of reserves. Maybe 3% to 5% kind of an immediate reaction and then the stock again consolidates. But my only worry with these stocks is that they happen to be so susceptible to government announcements and regulatory changes that fundamentals do not really work for too long and then they tend to get to react on these kind of news flows. I definitely feel this news could take ONGC further at least 4-5% in the short term.