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The 8 per cent weekly decline in ONGC resulted in an evening star formation in the weekly candlestick chart that is a bearish reversal formation.

If the stock is retracing the entire rally from the January low, immediate support is around Rs 800, where the stock is halting currently. 50-day moving average poised at this level will also lend support in the near-term. Decline below this level would give the next support at Rs 735. Short-term investors can hold the stock as long as it trades above the first support.

ONGC would face resistance from Rs 850 and Rs 880 in the week ahead. Inability to move above the first resistance would result in the decline continuing to Rs 770.

— Lokeshwarri S.K.

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