HOEC, Weekly - 20W MA has been a strong support and this time as well appears to be bouncing off it. Fundamentally there are some good things happening here with the first oil sale from B-80 field possibly happening in this quarter. The potential for revenue from this field is big and appears to be low risk. Dirok field as well will start contributing more from 35 mmscfd to 55 mmscfd with its current phase-2 expansion (75 therafter). There’s a 35 km gas pipeline as well being laid which will give it access to NE markets without transportation. Some details on revenue projections here. 300 Cr topline and 200 Cr bottomline possible from B-80 and this is with Oil between $55-$60. He also mentions that each $1 increase in oil price add 8 Cr to their topline. Can be a potential hedge against oil and gas prices which are going up due to geopolitical tensions
GPIL, Weekly - Looks to be a big breakout week after a long downwards consolidation in the channel. Cheaper absolutely, as well as relatively among peers, the stock has been discussed threadbare in the GPIL thread. Captive mines give it a distinct competitive edge. higher quality ore and presence in pellets a good advantage. The sale of non-care asset (solar plant) is a positive. The biggest positive now is the steel tailwind with the war and consequent higher inflation (steel up 10% in Europe last 2 days. NYSE ARCA Steel index is up 15% in one week, 4% today and appears heading for 52 wk highs)
Disc: Have trading positions in both. HOEC between 220-185. GPIL between 290-300.