Indian Oil and Gas sector has almost been on
the verge of bankruptcy due to foolhardy polices of government. This sector has been
reeling under massive under recovery since 2003-2004. It’s anybody’s guess what kind
of public transport system could have been created with the money which is wasted into subsidy, and would permanently
reduce the demand of oil for transport. Oil and gas sector is India may also be
a classic case for value investing as this sector has now been neglected for too
far and for too long.
If we look at the charts I think something is brewing
up in oil and gas sector. It is quite entirely possible this sector may see a
break of a new uptrend in current year. Even if that doesn’t happen I think
this sector is comfortably poised for a 20% – 30% upmove from current prices.
The first chart is the price chart of HPCL which
is trading at 298 and target will be around 350 with a stop loss of 280
Second chart is of ONGC, stock is trading at
274 target will be around 300 – 315 with stop loss of 250
Third chart is of Indian Oil, which is trading
at 272 target will be around 325 with a stop loss of 250.
Last chart is of GAIL which is trading at
around 364, stop loss of 335 and target of 425
Summary:-
Oil and gas sector is poised for a breakout.
Buy HPCL, IOCL, ONGC and GAIL at cmp for a 25% upside.
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