BPCL share price set to soar 11 pct gains in one-month! 'Buy', say stock market experts

BPCL share price is expected to hit Rs 580-590 levels from its current market price of Rs 535 per stock, say market experts.

BPCL share price is overall bullish and every dip in the counter should be seen as a buying opportunity, say stock market experts. Photo: Reuters

BPCL or Bharat Petroleum Corporation Limited shares have been rising for a few weeks. The BPCL stock rally further gained momentum when Finance Minister Nirmala Sitharaman announced that BPCL will be divested by March 2020. According to the stock market expert, the BPCL shares are expected to continue upside movement. They are of the opinion that BPCL shares have strong support at Rs 490 levels and profit-booking is awaited in the counter. Experts advised share market investors to take every dip in BPCL as a buying opportunity as it will show Rs 580 level in one-month. Currently, BPCL share price is oscillating around Rs 535 per stock levels.

Elaborating upon the fundamentals of the BPCL shares, Swarnendu Bhushan, Research Analyst at Motilal Oswal said, "The possible strategic divestment of oil marketing companies (OMCs) to private parties is generally filled with fantasies of rich valuations. After all, a stake in any of the OMCs provides the buyer with ready access to the third largest and one of the fastest-growing petroleum markets globally. In our recent report, we analyzed various valuation methodologies for BPCL, to arrive at a target price range of Rs 518-593 per share.

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Speaking on the BPCL shares Sumeet Bagadia, Executive Director at Choice Broking said, "BPCL share chart looks good and has made strong support at Rs 480-490 levels. In my opinion, the BPCL shares can hit Rs 545-550 per stock levels in the short-term perspective." However, Bagadia suggested share market investors take a buy position in the BPCL counter in a calibrated manner, which means investing 50 per cent of the corpus at current levels and use the rest of the amount if it touches Rs 510 levels post-profit-booking.

Prakash Pandey, MD & CEO at Plutus Advisors said, "The BPCL share price is overall bullish and every dip in the counter should be seen as a buying opportunity. From current levels, we can expect Rs 10-15 correction in the BPCL shares as it has been rallying for the last few weeks. I would advise share market investors to take buy position in the counter at around Rs 520 for the target of Rs 580 to Rs 590 per stock levels."

On how much time it would take to reach the target, Pandey said that the BPCL shares would hit Rs 580-590 target in around one month's time. However, he strongly recommended stop loss at Rs 488 while taking any buy position in the BPCL stocks.

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