Keep Rs 590 stoploss in BPCL: VK Sharma

Keep Rs 590 stoploss in BPCL, says VK Sharma, Business Head Private Broking & Wealth Management at HDFC Securities.

Sharma told CNBC-TV18, "Traders who take positions in terms of purely trading purposes need to have a very clear-cut mind that what is the target and what is the stop loss. So your target upward side should have a potential of at least three times the stop loss which you are willing to take. So you should have very tight stop loss in place and ideally it should not be more than 3% but since you have still lost a lot of money and you are still holding that so from that perspective you can look at the cash market, you can have a stop loss of around Rs 590 and should that break then of course you can sell this stock." He further added, "The worst has already come in because the diesel prices, which were suppose to have been hiked or given power to these oil companies have been shelved and now gone for December next year. I think this stock could tumble down but anybody who is having horizon of more than one year needs to look at because this is a fantastic company, it has a lot of asset value and huge investment in other companies like it has 22% stake in IGL and Petronet LNG 12.5% even the new pipeline with GSPL has won, I think there is 11% stake in the joint venture in this new pipeline." "It has good upside because the oil exploration play, oil exploration going at many places from next year it will start going on adding to the bottomline as well. So give it one more year and the moment it is free of these things, I think it