Equity Alert: ONGC up 2% on value buying, but upside seen capped

[K.Karthik Raja]

Equity Alert: ONGC up 2% on value buying, but upside seen capped
Friday, Jun 20

Equity Alert: ONGC up 2% on value buying, but upside seen capped
MUMBAI--1:20PM--Oil & Natural Gas Corp was up 2% at 876 rupees,
despite
the weak broad market, on value buying, dealers said.
Gains in the stock are seen capped on concerns ONGC may bear a
higher
subsidy burden in the future and on lack of company-related catalysts,
they
said.
Technical analysts see intraday resistance for the stock around
900
rupees, and strong resistance at 940 rupees.
Goldman Sachs sees the company's net realisation unchanged in
2008-09
(Apr-Mar) despite the surge in global crude oil prices due to the
subsidy
burden.
The stock has strong support at around 800 rupees, the brokerage
said.
So far, 1.2 mln shares of the company have been traded on NSE.
June
futures of the stock were at 10-point discount to the spot, with 3%
rise in
open interest.
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