Stocks to Watch: MRPL, Chennai Petro

Markets sunk deep in red on the back of continued profit booking and weak global cues. Markets ignored stability in crude prices and steady inflation numbers. In this week, the Sensex ends up 4.5% and Nifty up 5.5% from its previous week close.

E Mathew of Mathew Easow Fiscal Services is positive on MRPL, Bongaigaon Refinery and Chennai Petroleum:

Here is how he views these stocks:

On MRPL:

 MRPL is amazing to say the least. This stock has broken out above an important level of around Rs 55 to Rs 58. The breakout has been very convincing. But the only problem now is that is the stop loss is also around this breakout zone of Rs 57-58. The immediate target is around Rs 76. The stock has moved up on volumes and has the potential possibly to move up to around Rs 82 to Rs 85, which really is a big supply zone.

On Bongaigaon Refinery and Chennai Petroleum:

Bongaigaon looks very strong. I would go long on Bongaigaon. The stock has got an excellent support now at around the Rs 54-55 zone. If one is initiating a long trade one can have a decent stoploss of Rs 4-5.  One could look at a target of about Rs 88-90 in Bongaigaon in the medium term.

Chennai Petroleum a standalone refinery is another company that came out with excellent results. The stocks didn’t react that much to the results. But at lower levels, it has a very good support around the Rs 270-275 zone. That would be an excellent buy if one could get it around that region.