Equity Alert: ONGC down 9% on FII selling; support seen 790 rupees

[K.Karthik Raja]

Equity Alert: ONGC down 9% on FII selling; support seen 790 rupees
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Equity Alert: ONGC down 9% on FII selling; support seen 790 rupees
MUMBAI--1:57PM--Shares of Oil and Natural Gas Corp dropped 8.9% to
801.5 rupees on selling by foreign institutional investors,
Some hedge funds have also been selling the shares as a part of
index management strategy amid weak global markets.
The stock is looking very weak on charts and intraday can come
down to 790 rupees.
We have a 'sell' recommendation on the share, with a target of 700
rupees in two-three weeks
Some dealers said likelihood of an increase in subsidy burden as
crude oil prices continue to trade around record highs and a partial
rollback on the recent fuel price hike due to the Left parties'
opposition to the move may have dented sentiment for the share.
So far on NSE, 2.3 mln shares of the company have been traded. Its
June contract was trading at a 4-point discount to spot, with 8.4%
rise in open interest.
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