Stocks to Buy – BPCL – Stock seeing some weakness now; know what technical analyst Nilesh Jain says about it

Stocks to Buy – BPCL – BPCL stock has been grabbing a lot of headlines of-late especially because of the news around its disinvestment. Many analysts are quite bullish on this stock and expect a high return for investors in this stock. One such analyst is Nilesh Jain, who is Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking.  

The BPCL stocks continued trading in the resd zone on Wednesday at 12:45 pm on NSE, falling by 0.7 per cent or almost Rs 3. On Tuesday, BPCL stocks ended at Rs 436.20 on NSE, down by 0.7 per cent or Rs 3.15 from the previous close on Monday. Jain said the news around the divestment has created a lot of buzz around this stock.  

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The near to medium term target price of this stock is in between Rs 455 and Rs 460. He said that any correction is a buying opportunity in this stock. He puts the stop loss at Rs 420. 

He said that the recent interim dividend announcement of Rs 5 per equity share was a touch disappointing for investors causing a negative sentimental impact on this stock. But, the outlook remains positive the BPCL stock is poised to touch the targets of Rs 455-460 on a positional medium term basis, the AVP said. 

Jain has a 2-months view on this stock. 

Zee Business Managing Editor Anil Singhvi has been telling investors not to worry as the dividend by BPCL is likely to be very good. Singhvi reiterated his stand that investors who buy BPCL stock with a long-term view will earn handsome returns. This is a big litmus test for the government. The government is not likely to fail in it.   

On the issue of dividend, the Market Guru had said that the Rs 5 dividend from the stake sale of Numaligarh Refinery was low because the financial closure of this deal is yet to happen. Investors can expect a bigger dividend payout by April end or May beginning, the Managing Editor said.