Fire breaks out at ONGC's Hazira plant; As share price takes a hit, what experts want investors to do

ONGC share price crashed around 2 per cent in the opening bell today after the newsbreak of fire at its Hazira plant. However, the ONGC shares started to recover once the ONGC tweeted that fire at Hazira Plant has been completely extinguished. Efforts are being made to resume normal operations at the earliest, but in this period of half day trade session, stock market experts are of the opinion that one should not miss the opportunity created by this sentiment for the stock market investors. They said that ONGC share has strong support at Rs 62 to Rs 60 and it has upper side resistance at Rs 85. So, one can buy ONGC shares for this target.

Speaking on what the technical charts say in regard to ONGC shares Rohit Singre, Senior Technical Research Analyst at LKP Securities said, "ONGC has strong support at Rs 60-62 per share mark. In fact, it has been trading in the range of Rs 60 to Rs 85 and hence one can buy ONGC share for the target of Rs 85 maintaining the stop loss below Rs 60."

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Highlighting upon the reason for crash in ONGC shares, Sumeet Bagadia, Executive Director at Choice Broking said, "ONGC shares were under pressure in the opening bell today due to the outbreak of fire at its Hazira Plant. However, the PSU company has made it clear that the fire at its plant has been completely extinguished and production there can be started soon. So, there is a bounce back expected in the ONGC share. One can buy ONGC shares at current Rs 66 levels for the immediate target of Rs 70 to Rs 72 levels."

See ONGC tweet below:

Fire at Hazira Plant has been completely extinguished. Efforts are being made to resume normal operations at the earliest.

— ONGC (@ONGC_) September 24, 2020

Bagadia also suggested maintaining the stop loss below Rs 60 as ONGC stocks may go up to Rs 50 if it breaks its immediate support of Rs 60.