Deepak Chhabria, CEO of IL&FS Investsmart Asia-Pac Singapore and VK Sharma of Anagram Stock Broking share their views on the oil sector.
In the medium term, Deepak Chhabria feels that there is definitely a trade left in the oil marketing companies.
However, he does expect to see some near term volatility in oil. "It is tough to say whether there is more downside in the absolute prices in HPCL and BPCL from this level but if there, is it is not significant."
"I would accumulate at these levels with an intent to make money over 2-3 quarters." Chhabria states.
VK Sharma agrees that the oil space has weakened and over past several sessions the stocks have gone down. However, he feels that after seeing so much of losses in this space, investors should not bail out at this point of time.
"I think it's time to look at these stocks with a sense of perspective because this kind of a correction with the market going up, gives one opportunity."
Getting stock specific, Sharma says, "In HPCL, probably if Rs 297 holds, I think with a stop loss of Rs 295, investors could look at going long at this point of time."
With a medium term, 2-3 quarter perspective, Chhabria is positive about oil. He says, "The commodity space, particularly oil, over the medium term, will go down from these levels. At that point, these stocks will definitely give great returns."For more information about trading and markets log on to www.moneycontrol.com
