Day traders are suggested to purchase GAIL stock around 422 with a strict stop loss below Rs 400. The target for the day is Rs 513.

The stock price becomes more attractive, if the stock markets remain positive.

Stock analyst Ashwani Gujral has given this day trading call.

On Wednesday (6 Feb), the company’s share marked closure at Rs 436.30 on BSE. The stock of the company has touched 52-week high of Rs 555 and low of Rs 254 on BSE.

GAIL (India) has decided to extend its projected Dabhol-Bangalore gas pipeline to Goa to meet the fuel requirements of the country’s hottest tourist destination.

Hinging upon the source and customer affiliation, the 30-inch Dabhol-Bangalore pipeline shall be designed to carry 16 million standard cubic meters of gas daily.

The Dabhol-Bangalore pipeline is among the 5 new pipelines for which GAIL has already received authorization in the first quarter of 2007. The other pipelines for which approval has been granted include DadriBawanaNangal pipeline, Chainsa-GurgaonJhajjharHissar pipeline, JagdishpurHaldia pipeline, and KochiKanjirkkod-Bangalore/Mangalore pipeline.

Besides, GAIL will be laying three pipelines to augment the capacities of DahejVijaipur pipeline, VijaipurDadri pipeline, VijaipurAuraiyaJagdishpur pipeline.

The company has posted net sales of Rs. 429833 lacs for quarter ending on 31-DEC-2007 against Rs. 510622 lacs for the quarter ending on 31-DEC-2006. Net Profit for the quarter stood at Rs. 62132 lacs as against Rs. 66546 lacs for the quarter ending on 31-DEC-2006.

The stocks of other companies from the oil and exploration sector, which are looking good for short and medium-term trading, include Cairn India, ONGC and Aban Offshore.

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