Stock market analysts have maintained ‘buy’ rating on Cairn India Limited (CIL) stock with an intraday target of Rs 227.

According to them, interested traders can purchase the stock above Rs 223 with a strict stop loss of Rs 220. If the stock market remains positive, the stock pricing becomes more attractive, and reach above Rs 230.
 
Shares of the company, on Wednesday (Sep 10), closed at Rs 224.30 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 453270. The share price has seen a 52-week high of Rs 342.50 and a low of Rs 136 on BSE.

The stock has great potential to go upside. It can still exhibit superb surge. It will achieve the target price as the company has healthy growth plans and well-built operating capabilities. The long term traders are recommended to hold the stock.

On Sep 07, realty giant DLF, telecom major Bharti Airtel and energy firms ONGC and Cairn India made their way to the Dow Jones BRIC 50 Index, a blue-chip index assessing performance of 50 biggest and most liquid firms in Brazil, Russia, India and China.

The newbies would put back 4 other Indian companies including Unitech, Tata Motors, TCS and Satyam Computer on the investible index.

CIL’s Rajasthan fields will make 16% extra oil at 175,000 barrels on a daily basis and will contribute over 1/5 of the country’s existing domestic oil production, when it commences production during the second half of 2009.

According to reports, CIL has submitted a revised field growth plan for Mangala oil field, and the scheme envisages a 25% increase in peak production at 125,000 barrel per day.

Moreover, the company’s remuneration committee, at its meeting held on July 29, 2008, sanctioned the grant of 4,563,423 stock options to the qualified company’s staff.

The committee granted 3,773,856 options under Cairn India Employee Stock Option Plan (CIESOP) 2006 and 789,567 options under Cairn India Performance Option Plan (CIPOP) 2006.

For the three months period ended June 30, Cairn India’s quarterly loss on the standalone basis widened to Rs 466.80 million, as against Rs 75.69 million during the corresponding period of the last year.

Other stocks from the same sector that looks good for short-term as well as long-term trading includes ONGC, GAIL and Aban Offshore.