Stock market analysts are of the view that investors can buy Essar Oil stock to achieve a short-term target of Rs 306.

The stock can be purchased on declines with a strict stop loss of Rs 270.
 
The investors can achieve the said target within a period of 4-8 weeks. So they are advised not to sell the stock before achieving this price target.

If the stock market remains on positive track within the said period, the next short-term target for the stock will be above Rs 313.

Today, the shares of the company opened at Rs 271, as against its last closure at Rs 270.35 (April 23) on the Bombay Stock Exchange (BSE). The share price has seen a 52-week high of Rs 360 and a low of Rs 47.8 on BSE.

The company’s board meeting will be held on April 26, 2008, inter-alia, to take on record the Unaudited Financial Results of the Company for the quarter / year ended March 31, 2008.  

Moreover, the group has also decided to establish a polypropylene unit in Jamnagar.
 
The group is making discussions with two companies for a possible tie up for the plant, which is likely to come up in the group’s special economic zone (SEZ) in Vadinar, an all-weather deep-draft natural port on India`s west coast. Over 60% of India’s crude oil imports land in and around this region.
 
The company has already applied for necessary clearance for the proposed plant.

Currently, Reliance Industries is Asia’s largest manufacturer of polypropylene (PP). With a combined capacity of over 1 million tons, Reliance is one of the top eight polypropylene producers in the world.

The proposed plant would be near the Essar Oil’s grassroots refinery in Gujarat, which was commissioned in 2006.

Other stocks from the same sector that looks good for short-term trading includes Reliance Petro, IOC, MRPL and BPCL.