Bullish on Cairn, target 340 342: Ambareesh Baliga

ET Now spoke to Ambareesh Baliga, VP, Karvy Stock Broking Ltd, for a fundamental check on the oil stocks.

Non-OMC, non-Reliance, non-ONGC, you like anything or dislike anything strongly?

Yeah in fact we have been positive on Cairn and that was a thing at levels if I am not wrong of 265-270 and we are still bullish at this point of time. Again looking at the way the oil prices are, possibly it can move to levels of around 340 342.

But what about the OMC lot?

OMC lot, it is done because it had moved up based on decontrol, the partial decontrol has happened as far as petrol is concerned but the major one would have been diesel where there is uncertainty as of now whereas the way these stocks had moved up, they are already discounted the fact that we will have a diesel decontrol.

So since that is not happening, the stocks would react and you really cannot give this the full valuation unless and of course you have kerosene and LPG decontrol, which I really do not know as to when it will happen.