Oil & Natural Gas Corporation Ltd. Gains 9.53%: 6 Key Factors Driving the Rally

Jan 31 2026 04:05 PM IST
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Oil & Natural Gas Corporation Ltd. (ONGC) delivered a strong weekly performance, gaining 9.53% from Rs.245.55 to Rs.268.95 between 27 and 30 January 2026, significantly outperforming the Sensex’s 1.62% rise over the same period. The stock’s rally was marked by multiple new 52-week highs, robust volume and value turnover, and a surge in derivatives open interest, reflecting heightened investor interest and positive market dynamics within the oil sector.

Key Events This Week

27 Jan: Surge in open interest signals shifting market sentiment

28 Jan: New 52-week high at Rs.266.05 and intraday high of Rs.258.35

29 Jan: Fresh 52-week high at Rs.275.75 amid heavy value turnover

30 Jan: Technical momentum shifts amid mixed indicator signals

Week Open
Rs.245.55
Week Close
Rs.268.95
+9.53%
Week High
Rs.275.75
vs Sensex
+7.91%

27 January 2026: Surge in Open Interest Signals Shifting Market Sentiment

ONGC’s week began with a notable 1.02% gain to Rs.248.05, outperforming the Sensex’s 0.50% rise. This price action coincided with a 12.44% surge in derivatives open interest, rising by 6,203 contracts to 56,082, alongside a substantial volume of 41,043 contracts traded. The futures segment accounted for ₹35,566.46 lakhs in value, while options contributed ₹21,003.88 crores, indicating strong market participation.

The increase in open interest alongside rising volumes suggested fresh capital inflows and directional bets, with traders positioning for further upside. Despite this, delivery volumes showed a slight dip compared to the five-day average, hinting at speculative interest driving price action more than long-term accumulation. ONGC traded above all key moving averages, reinforcing a strong technical backdrop.

28 January 2026: New 52-Week High and Heavy Trading Volume

On 28 January, ONGC surged 8.30% to close at Rs.268.65, hitting a new 52-week high of Rs.266.05 intraday. The stock outperformed the Oil Exploration and Refineries sector’s 2.21% gain and the Sensex’s 1.12% rise. This marked the fifth consecutive day of gains, delivering a 9.35% return over the week so far.

Trading volumes were exceptional, with 1.33 crore shares exchanging hands, translating to a traded value of approximately ₹343.09 crores by mid-morning. Delivery volumes surged by 82.89% compared to the five-day average, signalling strong institutional interest and accumulation. The stock maintained its position above all major moving averages, confirming a sustained bullish trend.

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29 January 2026: Fresh 52-Week High and Institutional Buying

ONGC continued its upward trajectory on 29 January, hitting a new 52-week high of Rs.275.75 and closing at Rs.275.25, up 2.46% on the day. This marked six consecutive days of gains, with a cumulative return of 13.88%. The stock outperformed the oil sector by 1.57% and the Sensex, which declined 0.66% that day.

Trading volumes remained robust, with 95.85 lakh shares traded and a value turnover of ₹260.54 crores. Delivery volumes soared by 499.49% compared to the five-day average, indicating strong institutional accumulation. ONGC’s market capitalisation reached ₹3,46,297.35 crores, reinforcing its large-cap status. The stock maintained its position above all key moving averages, signalling sustained bullish momentum.

30 January 2026: Technical Momentum Shifts Amid Mixed Signals

On the final trading day of the week, ONGC closed at Rs.268.95, down 2.29% from the previous close, reflecting a mild technical consolidation after a strong rally. The stock traded in a range between Rs.269.00 and Rs.277.80, just below its 52-week high. Technical indicators presented a mixed picture: the weekly MACD and Bollinger Bands remained bullish, while the weekly RSI and moving averages showed mild bearishness, suggesting a sideways trend.

The MarketsMOJO Mojo Score stood at 64.0 with a Hold rating, downgraded from Buy earlier in the month. This rating reflects a cautious stance amid the mixed technical signals, despite the stock’s strong relative performance versus the Sensex and sector peers over multiple timeframes.

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Daily Price Comparison: ONGC vs Sensex (27-30 Jan 2026)

Date Stock Price Day Change Sensex Day Change
2026-01-27 Rs.248.05 +1.02% 35,786.84 +0.50%
2026-01-28 Rs.268.65 +8.30% 36,188.16 +1.12%
2026-01-29 Rs.275.25 +2.46% 36,266.59 +0.22%
2026-01-30 Rs.268.95 -2.29% 36,185.03 -0.22%

Key Takeaways

Positive Signals: ONGC’s 9.53% weekly gain significantly outpaced the Sensex’s 1.62%, driven by strong institutional participation, rising delivery volumes, and a surge in derivatives open interest. The stock’s consistent trading above all major moving averages and multiple new 52-week highs underscore robust technical momentum. The high dividend yield of around 5% adds to its appeal for income-focused investors.

Cautionary Notes: Despite strong price gains, the recent downgrade in Mojo Grade from Buy to Hold reflects a more cautious outlook amid valuation concerns and mixed technical signals. The technical momentum shift to a sideways trend on 30 January suggests potential consolidation or short-term volatility. Investors should monitor volume and momentum indicators closely, especially as the stock approaches resistance near its 52-week high.

Conclusion

Oil & Natural Gas Corporation Ltd. demonstrated a strong and sustained rally during the week ending 30 January 2026, marked by multiple new highs, heavy trading volumes, and increased derivatives activity. The stock’s outperformance relative to the Sensex and sector peers highlights its leadership within the oil sector amid favourable market conditions. However, the mixed technical signals and recent rating downgrade advise a balanced approach, with investors encouraged to watch for confirmation of momentum continuation or signs of consolidation. ONGC’s attractive dividend yield and large-cap status continue to make it a key stock for market participants focused on the energy sector’s evolving landscape.

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