Oil & Natural Gas Corporation Ltd Gains 4.19%: 5 Key Factors Driving the Rally

Feb 21 2026 04:02 PM IST
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Oil & Natural Gas Corporation Ltd. (ONGC) delivered a strong weekly performance, rising 4.19% from Rs.267.50 to Rs.278.70 between 16 and 20 February 2026, comfortably outperforming the Sensex’s modest 0.39% gain. The stock exhibited notable volatility during the week, with a midweek dip followed by a robust rebound culminating in a fresh 52-week high of Rs.280.80 on the final trading day. This review analyses the key events and market dynamics that shaped ONGC’s price action over the week.

Key Events This Week

16 Feb: Stock opens strong at Rs.271.60 (+1.53%)

18 Feb: Intraday low of Rs.263 amid price pressure (-2.63%)

19 Feb: Surges to intraday high of Rs.272.15 (+3.74%) with volume spike

20 Feb: Hits new 52-week high at Rs.280.80 (+1.53%)

Week Open
Rs.267.50
Week Close
Rs.278.70
+4.19%
Week High
Rs.280.80
vs Sensex
+3.80%

16 February 2026: Positive Start with 1.53% Gain

ONGC began the week on a positive note, closing at Rs.271.60, up 1.53% from the previous Friday’s close. The stock’s volume of 8,45,120 shares reflected steady investor interest, while the Sensex gained 0.70%, closing at 36,787.89. This initial strength set the tone for the week, supported by the company’s solid fundamentals and favourable market sentiment in the energy sector.

18 February 2026: Intraday Low Amid Price Pressure

Midweek trading saw a sharp reversal as ONGC faced selling pressure, closing at Rs.264.60, down 2.63%. The stock hit an intraday low of Rs.263, marking a 3.22% drop from the previous close. This decline was more pronounced than the Sensex’s 0.43% gain, signalling stock-specific weakness amid a cautious market environment. Despite this setback, ONGC remained above its key moving averages, indicating that the longer-term uptrend was intact.

19 February 2026: Strong Rebound with Volume Surge

ONGC rebounded impressively on 19 February, surging 3.74% to close at Rs.274.50. The stock reached an intraday high of Rs.272.15, supported by a remarkable volume spike of 2,38,88,856 shares, making it one of the most actively traded stocks by volume and value. Institutional interest was evident, with traded value exceeding ₹396 crore. The stock outperformed both the oil sector and the Sensex, which declined 1.45% amid volatile trading. This rally was accompanied by a 25.17% surge in derivatives open interest, signalling bullish market positioning.

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20 February 2026: New 52-Week High and Continued Momentum

Building on the previous day’s gains, ONGC hit a new 52-week high of Rs.280.80 on 20 February, closing at Rs.278.70, up 1.53%. The stock’s volume remained elevated at 97,69,335 shares, with a traded value of ₹272.05 crores, reflecting strong accumulation. Delivery volumes surged 72.9% compared to the five-day average, indicating robust investor conviction. The Sensex also recovered, gaining 0.41% to close at 36,674.32. ONGC’s sustained trading above all key moving averages confirmed its bullish technical stance.

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Date Stock Price Day Change Sensex Day Change
2026-02-16 Rs.271.60 +1.53% 36,787.89 +0.70%
2026-02-17 Rs.271.75 +0.06% 36,904.38 +0.32%
2026-02-18 Rs.264.60 -2.63% 37,062.35 +0.43%
2026-02-19 Rs.274.50 +3.74% 36,523.88 -1.45%
2026-02-20 Rs.278.70 +1.53% 36,674.32 +0.41%

Key Takeaways from the Week

Outperformance and Volatility: ONGC outpaced the Sensex by 3.80% over the week, demonstrating resilience despite midweek volatility. The stock’s ability to recover from an intraday low of Rs.263 to a new 52-week high underscores strong underlying demand.

Institutional and Derivatives Activity: Exceptional trading volumes and a 25.17% surge in derivatives open interest on 19 February highlight robust institutional interest and bullish market positioning. Elevated delivery volumes on 20 February further confirm accumulation by long-term investors.

Technical Strength: Sustained trading above all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day, signals a healthy medium- to long-term uptrend. The new 52-week high at Rs.280.80 marks a key technical milestone.

Valuation and Dividend Appeal: ONGC’s valuation metrics remain attractive, with a P/E ratio of 8.76 and a dividend yield exceeding 5%, offering a compelling risk-reward profile for income and value investors alike.

Sectoral Context: The stock’s outperformance amid mixed oil sector conditions and broader market volatility reflects company-specific strengths, including operational efficiency and market leadership.

Overall, ONGC’s weekly performance reflects a blend of fundamental robustness, technical momentum, and strong market participation, positioning it favourably within the large-cap oil sector landscape.

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