While the long-term outlook will turn positive for ONGC (₹256) only on a close above ₹312, in the short term, the stock is likely to turn volatile with positive bias. It finds immediate resistance ₹265 and support at ₹242. A close below ₹214 will turn the outlook negative for ONGC. We expect ONGC to swing in the range between ₹200 and ₹270 in the short term.
F&O pointers: ONGC September futures shed open interest on Friday. However, option trading indicates a positive bias, as calls shed open interest.
A close above ₹273.35 or below ₹236.65 will start pinching the traders. Hold the position for at least two weeks.
Follow-up: Traders who followed option strategy could book profits. For those who hold long futures, can do so with stop-loss mentioned.