Buy Essar Oil: SP Tulsian

SP Tulsian of sptulsian.com advises traders to buy Essar Oil at current levels.

Tulsian told CNBC-TV18, “Whenever we see Essar Oil moving up for two or three days it goes up by maybe about 20-25 percent and the same kind of trading pattern we have seen here also. That means the stock is very risky, for any investor there is no point in taking a fundamental call. If I say that Q3 gross refining margins (GRM) has been very good at USD 9.75 or maybe 20 million capacity of the refinery with higher Nelson Complexity makes it a good buy, I won’t subscribe to that theory because whenever you see this stock moving up it goes as high as Rs 90 plus and all sort of things. So, it is very difficult and risky for the investor to enter into that stock.”
He further added, “If one is a trader one can expect a level of Rs 86-88 maybe in next couple of days. So, keep a time horizon till Thursday and if you get to see the level of maybe anywhere between Rs 86-80 or look for that level but if you get a smaller gain also maybe 3-4 percent try to exit from the stock. So, no short call, no negative view in the near-term but no buying advice also for the investor but traders can go long in the stock at the current price.”