Technical analyst, Ashwani Gujral has advised investors to purchase Shiv Vani Oil & Gas Exploration Services stock on declines in order to achieve a short-tern target of Rs 744.

The investors can achieve the target within a period of 5-6 weeks, and the strict stop loss for the suggested stock should be Rs 597.

The stock has great potential to go upside. It can still exhibit superb surge. The long term traders are recommended to hold the stock.

On Thursday (May 8), the company’s shares closed at Rs 639.20 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 334494. The share price has seen a 52-week high of Rs 739.95 and a low of Rs 300 on BSE.

For the three-month period ended March 2008, Shiv Vani Oil and Gas Exploration Services has posted a phenomenal increase in standalone net profit helped by healthy sales growth plus significant improvement in operating efficiency.

During the quarter, the profit of the company jumped 2.09 times to Rs 192.33 million, as against Rs 91.85 million during the same period of the last year.

The company reported earnings of Rs 4.38 a share during the quarter, registering 59.27% growth over previous year period.

Net sales for the quarter zoomed 2.18 times to Rs 1,371.89 million, whereas total income for the quarter jumped 2.11 times to Rs 1,372.75 million, when compared with the prior year period.

During the quarter, the company revealed a rise in operating margin of 357.12 basis points to 39.41% on lower production cost. In contrast, there has been increase of 3.30 times in interest charge to Rs 197.28 million and rise of 96.05% in depreciation charge to Rs 96.28 million over previous year period.

Other stocks from the same sector that looks good for short term trading includes ONGC, GAIL, Reliance Natura and Cairn India.