Natraj Picks BPCL & HPCL

Now that the Presidential elections are over and crude oil trading above 75$, we can surely expect prices of all fuels to go up.
In order to take advantage of this Govt decision, I advise a buy on both BPCL & HPCL.
Since there is no guarantee it may happen tomorrow or in 2 days, I advise to take delivery in Cash or Aug futures.
I do not recommend in options as there is not much volumes happening & if the price hike is postponed, the current month options will become worthless. (I am pretty sure that the price hike will happen & it's a question of when & by how much)

A simple perusal of BPCL charts gives the near term support @ 329 & the next support @ 320 lvls. CMP is 332.30 (19-07-2007) NSE.
HPCL near term support is at @ 256 lvls & the next support lies @ 245 lvls. CMP is 259 (19-07-2007) NSE.
Sl can be kept between 1% - 4%, as per one's risk appetite.
I would advise to keep a trailing SL once the prices starts moving up.

Disclaimer:
I am planning to take a position in cash / Futrs.
Neither the author nor this website can be held liable for any loss incurred in this trade.