Hold Essar Oil, prefer RIL: Devang Mehta

Devang Mehta of Anand Rathi Financial Services told CNBC-TV18, "Essar Oil remains in news and in limelight for lot of different type of reasons, so our advise at this point would be that people who are holding the stock keep on holding as there is a positive news flow right now but people who are not holding it there are lot of good stocks in the oil and gas universe which would in fact be better."

"I would also suggest Reliance Industries at this point probably lot of things are going good for that company. We feel that there can be substantial upside here on as the sector churning as well as the sector changing starts happening and as soon as the market picks up this would be a big beneficiary," he said.

Disclosure: Reliance Industries has acquired management control of Network18, which owns TV18 Broadcast and moneycontrol.com