Kunal Bothra of LKP Securities told CNBC-TV18, "Cairn India and ONGC are coming in out of a medium-term base. Over the last two months, ONGC has been in a range of Rs 350-365 odd. However today with the kind of gap-up that you have seen, there seems to be some signs of a breakout happening. Cairn India especially is going very strong today. There are some initial triggers but I believe that a longer-term call probably a medium-term call needs to wait at least for the next few weeks."
"You need to see signs of solidity coming across these stocks. So if you see good signs, volume building up, momentum indicators trying to go on an upswing, that is where a larger call could be taken. However, initial reactions could be that this is a rally and it could at least last for next 3-4 percent further from the current levels for both of these stocks," he said.
Disclosure: Analyst has no personal holdings in the stock and it is possible that he may have recommended the same to our clients at LKP.
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