Avoid ONGC, Reliance a safe bet: CK Narayan

In a chat with ET Now, CK Narayan, President Treasury, Sharyans Resources talks about ONGC and Reliance.

What kind of a recommendation would you make on either of the two – ONGC and Reliance?

I have been consistently maintaining in ONGC that it is not a buy because it has a pattern, which is suggestive of the counter going down to may be a 1000 bucks and this news about this oil spillage, etc., is certainly not going to change the track of the stock. In fact it will probably help things along, it did go down and make a new low for the swing as of today also, so ONGC remains under pressure. This news is only going to add to its troubles and I do not think it is a buy at any of these prices until we hit something around 1000 levels.

As far as Reliance is concerned, it has been a huge sideways based kind of stock, 1050-1100 is the higher end of the range, 950 around is the lower end of the range. We did see the stock actually tapped into the lower end of the range. On the futures, it hit about 958 or thereabouts yesterday and it had shown some bit of spunk at the lower levels and shown some willingness to move up and there is some sort of follow through on that buying from yesterday probably in anticipation of the results today. In case the results are indeed in line with street expectations or higher, there is a possibility that Reliance could now move up into the higher end of the range because it is trading down its support, so I would say if you have to choose between ONGC and Reliance, place your bets with Reliance, keep a stop at about 940 and simply go long with an expectation of about 1040.