Book profits in GAIL, avoid ONGC: Anil Manghnani

How are the charts looking for GAIL as well as Gujarat Gas?

GAIL especially has been an outperformer from the pack over the last few months. So that is one of a buy and hold but the upside at least in this move has far been limited. Since there is good news that subsidy burden will be reduced to something when the deregulation comes about, it is a good opportunity to book some profits in GAIL and wait when there is a deeper fall to buy.

ONGC should be avoided, that stock has done nothing for the market like Reliance and probably L&T over the last six to seven months. So it is not something that, maybe your upside is 7% to 10% on a trading, any given move but otherwise chartically it looks probably still weak than the rest of the markets. I would still play the oil market pack. Every time you get a dip in that, that seems to be the best because the news pretty much would impact them directly more than anybody else.

Anil Manghnani is Director, Modern Shares and Stockbrokers Limited.