Stock market analyst Hitendra Vasudeo has suggested investors to 'sell' Essar Oil stock.

According to Mr. Vasudeo, investors can sell the stock around Rs 121.90-Rs 125.10 with a stop loss of Rs 127 to achieve a target between Rs 116.90-Rs 108.80.

Today, the shares of the company opened at Rs 123 as against its last closure of Rs 120.15 on Thursday (July 08) on the Bombay Stock Exchange (BSE). The share price has seen a 52-week high of Rs 246.50 and a low of Rs 54.10 on BSE.

Mr. Vasudeo said that it is advantageous to sell the stock in today’s session as the counter has been going through huge pressure from the last few trading sessions.

After selling the stock, the interested investors can purchase the stock again at a low price, for medium term prospective to make good profits.

Essar Oil, in June 2009, said it would raise around Rs 9,606 crore via different domestic as well as international fund raising routes.

Essar Oil would raise funds through ADRs, GDRs and FCCBs.

During the existing year, Essar Oil`s investment is likely to surge up to $70 million in exploration and production (E&P) if a long-pending production sharing contract (PSC) with the administration for the Ratna and R-Series fields is concluded early.

For the three month period ended March 2009, Essar Oil registered profit of Rs 6,600 million as against a loss of Rs 84.80 million in the same quarter previous year.

During the quarter, net sales climbed up 143.59 times to Rs 68,150.00 million, whilst total income increased 139.23 times to Rs 68,320.00 million.

It posted profit of Rs 5.53 a share in the same period as against with a loss of Rs 0.07 a share in previous year period.