OMCs have not even matched the Nifty’s performance: Vijay Bhambwani, BSPLindia.com
I would be surprised to see BPCL hitting 600 or exceeding that in the next 20 days.
| Updated: Vijay Bhambwani, Author, CEO, BSPLindia.com (Technical Check)in an interview with ET Now talks about oil marketing stocks.
What is the call right now for the next 20 odd number of days still expiry, what is the view on BPCL?
If you check the weekly and monthly charts BPCL, IOC and HPCL, all have indicated long term head and shoulder patterns. From my side I have viewed the oil marketing companies as wealth destroyers. If you actually see the performance and the return on investment given by HP, BP and IOC since they have got listed they have not even matched the Nifty’s performance over the last couple of quarters because oil prices have fallen very steeply off a cliff.
From 2008 onwards, they have managed to outperform the indices but as oil prices remain firm as you see alternate investments in better companies, better return on relative strength basis, choice of portfolio picks occur and upside potential in BPCL is likely to be limited. I would be surprised to see BPCL hitting 600 or exceeding that in the next 20 days. I would be very glad to ride deeply out of money calls even in the December series.
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