Go long in HPCL, target Rs 940: Ashish Kyal

Ashish Kyal of wavesstrategy.com told CNBC-TV18, "If you look at the oil marketing companies (OMCs) stocks like Hindustan Petroleum Corporation (HPCL) or Bharat Petroleum Corporation (BPCL), those companies have been outperforming. The reason being, as everyone is aware about the softening crude oil prices which will be benefitting these companies to a large extent and the deregulation of the petrol and diesel prices. So, that is going to help these companies which we can clearly see in the trend." "HPCL has been running up from around Rs 700 levels and it has now reached somewhere around Rs 878-880. So, there is still a lot of room available in this stock. One can definitely initiate a long position in HPCL with a stop loss of around Rs 840 and the target of somewhere around Rs 940," he added. "If you look at HPCL from the wave structure this can be probably be the fifth wave in the stock that we are seeing as there is some loss of momentum seen on RSI divergence. However, still for short-term this looks to be a very decent pick," he added.