Why are RNRL, RPL buzzing?

The stocks RNRL and Reliance Petro are buzzing and SP Tulisan of sptulsian.com says that RNRL seems to be buzzing  on back of news of their application for City gas distribution, progress on oil exploration, as well as their future plans. He further adds that he would not be booking profits on RNRL.

He says Reliance Petroleum has bee buzzing with the news of Chevron stake getting increased in the company.

Excerpts from CNBC-TV18's exclusive interview with SP Tulsian:

Q: What’s happening on RNRL?

A: Day before there was a news that they have made an application for City gas distribution in Bombay, Delhi and NCR region. Definitely that can’t be the reason for seeing so much run up in the share price based on the fundamentals.

So this is purely the momentum play probably to do with the positive outcome of the Bombay High Court judgment which is in the first week of November and the progress which they are making on the oil exploration, the well which they have got as well as the coal bed methane plus their future plans.

This is a more of a momentum play, but it has definitely run beyond its fundamental value.

Q: Would you play the momentum this time or would you book profits here?

A: I won’t be booking profits. I won’t be making fresh entry at this level. Because of the down side you don’t have the risk of loosing 8-10%, so I probably may not be booking profits at this level.

Q: Your view on Reliance Petroleum?

 A: See again this talks are now advanced that probably Chevron would exercise their options of increasing their stake to 29% and people are saying the more the delay they have to shell-out more money or they may have to forgo their option of increasing their stake to 29% this is more to do with the Chevron stake getting increased into that company.