Book profit in ONGC around Rs 285: SP Tulsian

Tulsian told CNBC-TV18, “I have always been taking a contrarian view that if you take the absolute subsidy burden of ONGC, I don’t think that that is going to fall further, because whatever savings in the form of maybe the crude price fall or maybe the increase in the diesel prices eventually will go to the center's kitty, that is they will see that their fiscal deficit gets reduced and the absolute burden.”

He further added, “We may talk that 38.5% or 40% contribution is made by the ONGC. It is not the percentage, the relative contributing by ONGC is not going to remain at the same level, and it is going to remain at the absolute level. So they will be having double whammy in the form of the lower realizations plus continuing to share the same subsidy burden. So all these things are seen only as a technical or maybe the short-term mechanical calls on the stock that the stock is seeing beneficiary, but I will be keeping my negative stance the moment it crosses Rs 285 and there the profit booking may come in and again can make the stock to fall to about Rs 260-265 level.”