Nirmal Bang, one of the leading equity research-cum-broking house, is of the view that investors can buy Essar Oil with a short-term target.

According to Nirmal Bang Research, interested traders can buy the stock with a strict stop loss of Rs 140 to attain a target of Rs 170.

The report further stated that, if the counter is successful to breach 152, then it will create a huge breakout.

Today (Aug 28), the shares of the company opened at Rs 147.50 on BSE. The share price has seen a 52-week high of Rs 224.90 and a low of Rs 54.10 on BSE.

On Aug 25, it has been discovered that Essar Oil is making discussion with UBS, Citigroup and JP Morgan for a loan of about $750 million if it gains the bidding process for three European refineries put up for sale by Royal Dutch Shell.

Essar Oil wishes to win at least one of them and is, settling its funding arrangement. The sources on Aug 24 said that Essar Oil may establish a trading desk in Singapore to aid export oil products from its plant, which has been amplified by a third. Essar Oil's division Essar Exploration & Production India Ltd on Aug 20 said that it plans to spend around $350 million by 2013 in order to fund drilling of 500 wells in a coal
-bed methane (CBM) block in eastern India.

Essar E&P will also begin selling gas from the coal-rich eastern Raniganj block by December 2009.