Technical Analyst Ashwani Gujral has suggested investors to buy delivery call of Essar Oil in case the stock crosses Rs 220 before 2.00 pm.

Mr. Gujral has recommended this stock for delivery for short term gains as the stock has performed well in an otherwise weak market. Presently, it is trading down 1.2% at Rs 219.10.

Investors need not to worry as it will hit the ground soon. If it drops further, buy it around Rs 210 to achieve a target between Rs 250-340. Keep a stop loss of Rs 190. In medium term it can touch 375 mark.

An extraordinary general meeting (EGM) of the members of Essar Oil, will be held on Dec. 18, 2007 to issue and allot foreign currency convertible bonds and /or global depository shares (GDRs) and / or American depository receipts (ADRs), equity shares or warrants etc to an amount not exceeding USD 2,000 million to Essar Energy Holdings, Mauritius on preferential offer basis.

Incorporated in 1989, Essar Oil is a part of the large Essar group which has several businesses; steel, power, communications, shipping and Logistics, etc. The company has three main divisions namely energy, offshore exploration and petroleum products. They have exploration and production (E&P) rights in some of India`s most valuable oil and gas blocks.