'Go long on GAIL, exit ONGC'

In a chat with ET Now, Jitendra Mehta, technical analyst, Edelweiss, talks about his calls on ONGC and GAIL.

You have a sell call on ONGC and a buy call on GAIL. Why do you like GAIL and why do you want to get out of ONGC in a time when we are seeing crude prices pretty much beyond the upside?

We are looking at an inter-sector churn, which might happen. GAIL has been pretty much on a strong up move for a long time and we expect it to inch up towards Rs 500 levels or higher. However, ONGC has a very strong resistance around these Rs 1,200 levels and we expect it will retrace on Rs 1,140 levels from here, so there is a good long short trade available here. One can go long on GAIL and exit ONGC.