3 stock ideas by Osho Krishan of Anand Rathi: Buy ONGC, BPCL, IOC

BUY OIL & NATURAL GAS CORPORATION | TARGET: Rs 124 | STOP LOSS: Rs 110

ONGC witnessed a strong closing in the last trading session after a gap up opening, signalling trend reversal in the counter.  On the daily time frame, strong demand is seen near 100 DEMA as the stock has reversed from the oversold region on the oscillator front, 14-period RSI and witnessed a positive crossover. At the current juncture, the stock is placed at the lower band of the Bollinger (20, 2) that has historically provided strong demand. Hence, from a risk-reward point of view, ONGC is situated at a lucrative level to accumulate from a short to even medium-term perspective.

BUY BHARAT PETROLEUM CORPORATION | TARGET: Rs 490 | STOP LOSS: Rs 440

BPCL has witnessed resurgence from the ascending support line on the weekly time frame that even coincides with 100 DEMA on daily time frame, suggesting strong nearby support for the counter. The stock tends to carry momentum as it closed above all its major moving averages on the daily chart. On the oscillator front, 14-period RSI witnessed Golden Crossover and marched aggressively towards higher levels, followed by MACD. This affirms bullish stance in the counter in the coming future.

BUY INDIAN OIL CORPORATION | TARGET: Rs 112 | STOP LOSS: Rs 102

IOC closed on a strong note in the last session and is currently hovering between its short and medium exponential moving averages on the daily chart. On the oscillator front, 14 period RSI has bounced from the oversold region, indicating an early sign of reversal in the counter. Currently, the stock is situated near very strong support zone of the unfilled gap and any sustenance above the same is expected to remain subdued and inch high in the coming future.

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Disclaimer: Osho Krishan is senior manager – equity research at Anand Rathi Shares & Stock Brokers. Views expressed are personal.