santosh mms projects

8/12/2019 Santosh Mms Projects

1/56

1

A PROJECT REPORT ON

INDEPTH ANALYSIS ON OIL & GAS

SUBMITTED BYYADAV SANTOSH KUMAR

(FINANCE)

ROLL NO 79

Batch 2013 - 2015

UNDER THE GUIDANCE OFPROF. Farooque Mistry

(CORE FACULTY FINANCE)

UNIVERSITY OF MUMBAIKOHINOOR BUSINESS SCHOOL,

KURLA, MUMBAI.


2/56

2

DECLARATION

I hereby declare that the project report entitled INDEPTH ANALYSIS ON

OIL & GAS carried out at (NATHANI INVESTMENT) is my work

submitted in partial fulfillment of the requirement for Degree of MASTER OF

MANAGEMENT STUDIES (MMS), UNIVERSITY OF MUMBAI from

KOHINOOR BUSINESS SCHOOL, KURLA, MUMBAI and not submitted

for the award of any degree, diploma, fellowship or any Similar titles or prizes.

Date: Signature:

PLACE: MUMBAI STUDENT NAME: YADAV SANTOSH


3/56

3

CERTIFICATE

This is to certify that the project entitled INDEPTH ANALYSIS ON OIL &

GAS is successfully completed by SANTOSH KUMAR YADAV during

the second year of his course, in partial fulfillment of the Masters Degree in

Management Studies, under the University of Mumbai , through KOHINOOR

BUSINESS SCHOOL, Kurla, Mumbai-400070.

Date:Place: Mumbai PROF. FAROOQUE MISTRY


4/56

4

ACKNOWLEDGEMENT

I take this opportunity to sincerely thanks and express my gratitude to my project guide

Mr. RAVI NATHANI from NATHANI INVESTMENT . for all the training and guidance

provided to me during the period of my summer internship for guiding me throughout my

entire project.

I would also like to thank my mentor at Kohinoor Business School ,

Prof. FAROOQUE MISTRY for the valuable input given by her in coordination with my

project. The experience and the knowledge acquired over the interactions with her has been a

great learning experience and will help me a great deal in my future education and career.

I also wish to express sincere gratitude to all the respondents of the project without the kind

of co-operation of whom this work would not have been possible.

Thank You.


5/56

5

TABLE OF CONTENT

CHAPTER NO. PARTICULARS OF THE CONTENTS PG.NO

1 Executive Summary 6

2 Objective of the Study 7

3 Research Methodology

Limitations

8

4 Investment basics 9

5 Securities 10

6 Index of Indicator 11

7 Stock Exchange 13

8 Depository 15

9 Deriveteves 16

10 Fundamental Analysis 18

11 Technical Analys 19

12 Analysis of Oil and gas sectors 29

13 Analysis of Oil and gas Industery 32

14 Conclusion 55

15 Bibloography 56


6/56

6

EXECUTIVE SUMMARY

ANALYSIS ON OIL & GAS is a method of evaluating securities by analyzing the statistics

generated by market activity, such as past prices and volume. Technical analysts do notattempt to measure a security's intrinsic value, but instead use charts and other tools to

identify patterns that can suggest future activity.

Just as there are many investment styles on the fundamental side, there are also many

different types of technical traders. Some rely on chart patterns, others use

technical indicators and oscillators, and most use some combination of the two. In any case,

technical analysts' exclusive use of historical price and volume data is what separates them

from their fundamental counterparts. Unlike fundamental analysts, technical analysts don't

care whether a stock is undervalued - the only thing that matters is a security's past trading

data and what information this data can provide about where the security might move in the

future.

Fundamental analysis is very helpful to the investors , which is reflected in the investment

purpose.Fundamental analysis consists of three parts:

Economic ananlysis : Economic analysis is a task to be studied as it affects the companystax and will affect to the revenue of the industry as a whole.

Industry analysis : Industry analysis is a challenging factor for the research of the

fundamental analysis.

Company analysis : An approach was made to understand the oil & gases Index companies

& its impact on companies market share & its performance.

Any investor , who goes to systematic investment , he/she would like to know , the complete

scenario of the industry.It is interesting to know how technical & fundamental analysis helps

to forecast the price of the equity.

All the factors are involved in this analysis are determined and studied carefully to indentify

the factors in the existing environment.
http://www.investopedia.com/terms/v/volume.asphttp://www.investopedia.com/terms/i/intrinsicvalue.asphttp://www.investopedia.com/terms/p/pattern.asphttp://www.investopedia.com/terms/i/indicator.asphttp://www.investopedia.com/terms/o/oscillator.asphttp://www.investopedia.com/terms/u/undervalued.asphttp://www.investopedia.com/terms/u/undervalued.asphttp://www.investopedia.com/terms/o/oscillator.asphttp://www.investopedia.com/terms/i/indicator.asphttp://www.investopedia.com/terms/p/pattern.asphttp://www.investopedia.com/terms/i/intrinsicvalue.asphttp://www.investopedia.com/terms/v/volume.asp


7/56

7

OBJECTIVE OF THE STUDY

To analyse the evaluation of Oil &Gas industry.

To estimate the level and analyse the trend in the market concentration in the

Oil &Gas industry

Deliver a clear investment idea.

Understanding the trends, Problems and prospects and future growth opportunities

Of Oil &Gas Sector in India.

To prepare research report of selected Oil &Gas Companies and suggesting investor

to invest in particular share of the company


8/56

8

Research Methodology

Research methodology is a way to systematically solve the research problem.

The research methodology used for finding out the best investment scrips is technical

research methodology.

Primary data:

To solve the problems on technical & fundamental analysis on Oil & Gas sector-

Primary data was collected by discussing with my guide.

Observation

Secondary data:

Internet websites

Company website

LIMITATIONS

Fundamental analysis assumptions and calculations are based on historical data and

forecasts. Therefore the quality of information and assumptions used are critical.

Past performance is not an indicator of future performance.

There was no source to obtain Primary data from the companies hence had to source the

information from the secondary sources like

Company websites.


9/56

9

INVESTMENT BASICS

What is Investment?The money you earn is partly spent and the rest saved for meeting future expenses. Instead of

keeping the savings idle you may like to use savings in order to get return on it in the future.

This is called Investment.

One needs to invest to:

Focus and get control of your life

Become financially independent

Attain your goals

Avoid missed opportunities

What care should one take while investing?

Before making any investment, one must ensure to:

Copy the documents.

Read and understand than sign IT.

Verify the legitimacy of the investment.

Find out the costs and benefits associated with the investment.

Assess the risk-return profile of the investment.

Know the liquidity and safety aspects of the investment.

Ascertain if it is appropriate for your specific goals.

Compare these details with other investment opportunities available.

Search the web


10/56

10

SECURITIES

What is meant by Securities?

The definition of Securities as per the Securities Contracts Regulation Act (SCRA), 1956, includes instruments

such as shares, bonds, scrips, stocks or other marketable securities of similar nature in or of any incorporate

company or body corporate, government securities, derivatives of securities, units of collective investment

scheme, interest and rights in securities, security receipt or any other instruments so declared by the Central

Government.

What is the function of Securities Market?

Securities Markets is a place where buyers and sellers of securities can enter into transactions

to purchase and sell shares, bonds, debentures etc. Further, it performs an important role of

enabling corporate, entrepreneurs to raise resources for their companies and business ventures

through public issues. Transfer of resources from those having idle resources (investors) to

others who have a need for them (corporate) is most efficiently achieved through the

securities market. Stated formally, securities markets provide

channels for reallocation of savings to investments and entrepreneurship. Savings are linked

to investments by a variety of intermediaries, through a range of financial products, called

Securities.

Which are the securities one can invest in?

Shares

Government Securities

Derivative products

Units of Mutual Funds etc., are some of the securities investors in the securities

market can invest in.


11/56

11

INDEX

What is an Index?

An Index shows how a specified portfolio of share prices is moving in order to give anindication of market trends. It is a basket of securities and the average price movement of the

basket of securities indicates the index movement, whether upwards or downwards. An index

is a number used to represent the changes in a set of values between a base time period and

another time period. A stock index is a number that helps measure the levels of the market.

Returns on the index are expected to represent return that an investor can get if he has the

portfolio representing the entire market .various indies are computed for use by the investors.

Market indices have always been of great important in the world of security analysis and portfolio management. People from all walks of life are affected by market indexes.

Economists, technicians and statisticians use stock market indexes to study long term growth

patterns on the economy, to forecast business cycle patterns Investors use the market index as

a bench mark against which to evaluate the performance of the it own or institutional

portfolios. Technical analysts, base their decision to buy and sell on the pattern that appears

in the time series of the market indexes. Market indexes are also used as economic indicators.

The various indexes that are complied in the Indian markets are:

A) BSE Sensitive Index :The Bombay stock exchange had started its own price index since 1986. Called the

BSE Sensitive Index. It consists of 30 scrips which actively traded. Many of which are

in Group A (specified shares) and a few in Group B (non-specified). It represents all the

major industries quoted on the exchange and has a base-year 1978-79.

B) BSE National index:The BSE National Index was started by the Bombay Stock Exchange in 1988-89 with

the base year 1983-84. This series consists of 100 scrips belonging to NSE sensitive

series. These 100 scrips are chosen from all industrial group which represent the listing

on all major exchanges The method of complication is similar to that of BSE sensitive

Index.


12/56

12

C) BSE200 ARE Dollex:Two other indexes are complied by BSE since 1993. With base year 1989-90. Both

include activity traded scrips. BSE 200 is in rupee terms while the Dollex is in dollar

terms.

D) S & P CNX Nifty:It is a well diversified 50 stock index accounting for 25 sectors of the economy. It has

1995 as the base year. Unlike other indices, the base value is fixed at 1000.

E) RBI Index:The RBI complied security indies form 1949 on wards. These were classified under the

following heads:

1. Govt. and semi-Govt. securities

2. Debentures of companies.

3. Equity shares of companies


13/56


14/56


15/56

15

DEPOSITORY

What is a Depository?

A depository is like a bank wherein the deposits are securities (viz. shares, debentures, bonds,government securities, units etc.) in electronic form. A depository is an organization where

the securities of a shareholder are held in the electronic from though the medium of a

depository participant the function of a depository are similar to that of a bank. If an investor

desires to utilize the services of a depository the investor has to open an account with the

depository through a depository participant. A Depository participant is the reprehensive

(agent) in the depository system. The D.P will maintain the securities account balances and

intimate to the Holder about their holdings form time to time. SEBI has permitted banks,

financial institutions, custodies, stock brokers, etc, to become participants in the depository.

The main objective of a depository is to minimize the paper works involved with the

ownership, trading and transfer of securities. If an investor intends to get back his securities

in the physical form he can do so by requesting the Depository participant. This is known as

Dematerialization.

What's the difference between a depository and a depository participant?

A depository is a place where the stocks of investors are held in electronic form. The

depository has agents who are called depository participants (DPs). Think of it like a bank.

The head office where all the technology rests and details of all accounts held is like the

depository. And the DPs are the branches that cater to individuals. There are only two

depositories in India -- the National Securities Depository Ltd (NSDL) and the Central

Depository Services Ltd (CDSL). There are over a 100 DPs


16/56

16

DERIVATIVE

What is a Derivative?

Derivative is a product whose value is derived from the value of one or more basic variables,called underlying. The underlying asset can be equity, index, foreign exchange (forex),

commodity or any other asset. Derivative products initially emerged as hedging devices

against fluctuations in commodity prices and commodity-linked derivatives remained the sole

form such products for almost three hundred years. The financial derivatives came into

spotlight in post-1970 period due to growing instability in the financial markets. However,

since their emergence, these products have become very popular and by 1990s, they

accounted for about two thirds of total transactions in derivative products.

What are Types of Derivatives?

Forwards :

A forward contract is a customized contract between two entities, where settlement takes

place on a specific date in the future at todays pre -agreed price.

Futures:

A futures contract is an agreement between two parties to buy Or sell an asset at a certain

time in the future at a certain price.

Options:

An Option is a contract which gives the right, but not an obligation, to buy or sell the

underlying at a stated date and at a stated price.

Options are of two types - Calls and Puts options:

Calls give the buyer the right but not the obligation to buy a given quantity of the underlying

asset, at a given price on or before a given future date.


17/56

17

Puts give the buyer the right, but not the obligation to sell a given quantity of underlying

asset at a given price on or before a given future date. Presently, at NSE futures and options

are traded on the Nifty, CNX IT, BANK Nifty and 116 single stocks.

Warrants:

Options generally have lives of up to one year. The majority of options traded on exchanges

have maximum maturity of nine months. Longer dated options are called Warrants and are

generally traded over-the counter.

What is an Option Premium?

At the time of buying an option contract, the buyer has to pay premium. The premium is the

price for acquiring the right to buy or sell. It is price paid by the option buyer to the option

seller for acquiring the right to buy or sell. Option premiums are always paid up front.

What is Commodity Exchange?

A Commodity Exchange is an association, or a company of any other body corporate

organizing futures trading in commodities. In a wider sense, it is taken to include any

organized market place where trade is routed through one mechanism, allowing effective

competition among buyers and among sellers this would include auction-type exchanges,

but not wholesale markets, where trade is localized, but effectively takes place through many

non-related individual transactions between different permutations of buyers and sellers.

What is meant by Commodity?

FCRA Forward Contracts (Regulation) Act, 1952 defines goods as every kind of movable

property other than actionable claims, money and securities. Futures trading is organize d in

such goods or commodities as are permitted by the Central Government. At present, all goods

and products of agricultural (including plantation), mineral and fossil origin are allowed forfutures trading under the auspices of the commodity exchanges recognized under the FCRA.


18/56

18

What is Commodity derivatives market?

Commodity derivatives market trade contracts for which the Underlying asset is commodity.

It can be an agricultural commodity like wheat, soybeans, rapeseed, cotton, etc or precious

metals like gold, silver, etc.

What is the difference between Commodity and Financial derivatives?

The basic concept of a derivative contract remains the same whether the underlying happens

to be a commodity or a financial asset. However there are some features which are very peculiar to commodity derivative markets. In the case of financial derivatives, most of these

contracts are cash settled. Even in the case of physical settlement, financial assets are not

bulky and do not need special facility for storage. Due to the bulky nature of the underlying

assets, physical settlement in commodity derivatives creates the need for warehousing.

Similarly, the concept of varying quality of asset does not really exist as far as financial under

lying are concerned. However in the case of commodities, the quality of the asset underlying

a contract can vary at times.


19/56

19

FUNDAMENTAL ANALYSIS

A fundamental analysis is all about getting an understanding of a company, the health of its business and its future prospects. It includes reading and analyzing annual reports and

financial statements to get an understanding of the company's comparative advantages,competitors and its market environment.

Why use fundamental analysis.

Fundamental analysis is built on the idea that the stock market may price a company wrongfrom time to time. Profits can be made by finding under priced stocks and waiting for themarket to adjust the valuation of the company. By analyzing the financial reports fromcompanies you will get an understanding of the value of different companies and understandthe pricing in the stock market.

After analyzing these factors you have a better understanding of whether the price of thestock is undervalued or overvalued at the current market price. Fundamental analysis can also

be performed on a sectors basis and in the economy as a whole.


20/56

20

TECHNICL ANALYSIS

What is Technical Analysis?

Technical Analysis is the forecasting of future financial price movements based on anexamination of past price movements. Like weather forecasting, technical analysis does notresult in absolute predictions about the future. Instead, technical analysis can help investorsanticipate what is likely to happen to prices over time. Technical analysis uses a widevariety of charts that show price over time.

Technical analysis is applicable to stocks, indices, commodities, futures or any tradableinstrument where the price is influenced by the forces of supply and demand. Price refers toany combination of the open, high, low, or close for a given security over a specific timeframe. The time frame can be based on intraday (1-minute, 5-minutes, 10-minutes, 15-minutes, 30-minutes or hourly), daily, weekly or monthly price data and last a few hours ormany years. In addition, some technical analysts include volume or open interest figures withtheir study of price action.

CHART OF TECHNICAL ANALYSIS

A price chart is a sequence of prices plotted over a specific time frame. On the chart, thevertical axis represents the price scale while the horizontal axis represents time.

Chart properties

When looking at a chart, there are several factors that you should be aware of as they affectthe information that is provided. They include the time frame and the price scale used.

Time frame

Each bar, candlestick or dot in a chart contains information regarding a defined time interval.The length of this interval is the chart interval.

Deciding on which chart interval to use depends on your trading style and investmenthorizon. Day traders may use chart intervals as short as 1 minute, while swingers (traders that


21/56

21

hold trades between several days to a couple of weeks) usually use intervals varying fromseveral hours to a day.

Price Scale

There are two methods for displaying the price scale along the y-axis: arithmetic andlogarithmic.

On an arithmetic price scale, each price point is separated by the same vertical distance nomatter what the price level. Each unit of measure is the same throughout the entire scale. If astock advances from 10 to 100 over a 6-month period, the move from 10 to 20 (+100%variation) will appear to be the same distance as the move from 90 to 100 (+11% variation).Even though this move is the same in absolute terms, it is not the same in percentage terms.

On a logarithmic scale, each price point is separated by a vertical distance that is equal in percentage terms. An advance from 10 to 20 would represent an increase of 100%. Anadvance from 20 to 40 would also be 100%, as would an advance from 40 to 80. All three ofthese advances would appear as the same vertical distance on a logarithmic scale.

Type of Charts

There are three main types of charts that are used by traders depending on the informationthat they are seeking and their individual skill levels. The chart types are: the line chart, the

bar chart and the candlestick chart.


22/56

22

Line

Chart

INTERPRETATION: The line chart is the most basic type of chart. The line shown in thechart connects single prices over a selected period of time. The most popular line chart is thedaily chart. Although any point in the day could be plotted, most traders focus on the closing

price, which they consider the most important. However this presents an immediate problem;using a daily line chart, one cannot see the price activity that occurred during the rest of theday.

BENEFIT: A line chart gives the trader a fairly good idea of where the price of an asset hastraveled over a given time frame.


23/56

23

Bar

Chart

INTERPRETATION: Each vertical bar represents one period of price activity from thechosen periodicity, which could be as short as 1 minute for intraday charts, or as long asseveral years for historical charts. On a daily chart, the vertical bar represents one day'strading whereby:

The top of the bar represents the market's high price

The bottom of the bar represents the low

The left hash mark on the bar indicates the opening price

The right hash mark on the bar indicates the closing price


24/56

24

BENEFIT: By including open, high, low and close information, bar charts allow moredetailed analysis than standard line charts.

Candlestick

Chart

INTERPRETATION: The candlestick chart is closely related to the bar chart, as it alsorepresents the four major prices: high, low, open, and close. Each candle represents atimescale of your choice. The following timescales are offered by different chart software: 1min, 15 min, 30 min, 1 hour, 2 hour, 4 hour, 8 hour, daily, weekly and monthly.

For a daily chart, each candlestick represents one day's trading range and is displayed as"open" or "closed":


25/56

25

An open candlestick represents a higher close than open and is shown in blue.

A closed candlestick represents a lower close than open and is shown in red.

Each candlestick consists of two components, the real body and the shadows:

The real body is the thick part of the candlestick that represents the open and the close

The thin lines above and below the real body are the shadows that represent thesession's price extremes. The upper shadow (above the real body) measures the highof the session and the lower shadow (below the real body) measures the low of thesession.

BENEFIT: The candlestick chart is the most common chart used for technical analysis. Manytrading strategies are based upon patterns in candlestick charting .

TECHNICAL INDICATORS

Trend is the most important concept in technical analysis. A trend designates the generaldirection of a market movement. It is important to identify trends so that you can trade withthem rather than against them.

Types of Trend

A trend may be:

Upward this is called a Rally; the market trends the way up Downward this is called a Downtrend; the market trends the way down Sideways / horizontal this is called "flat market" or "trendless; the market trends

nowhere

Trend Lengths:

A trend of any direction can be classified according to its length


26/56

26

Short-term Trend: it usually lasts no more than three weeks Intermediate Trend: it usually lasts somewhere between 3 weeks to several months Long-Term or Major Trend; it is considered to last for a year or more. It is composed

of several intermediate trends, which often move against the direction of the Major

Trend

Trendlines:

A trend line is a simple charting technique that consists of connecting the significant highs(peaks) or the significant lows (troughs) to represent the trend in the market. These lines areused to clearly show the trend and also help in the identification of trend reversals.

A trendline may be classified as:

Rising trend line Declining trend line Sideways trend line

Example:

On the chart below, you can see a representation of a long-term upward trend in theEURUSD, along with a rising trend line.


27/56

27

Channels

A price channel is the addition of two parallel trendlines that act as strong areas of supportand resistance. One trendline connects a series of price highs while the other connects a seriesof lows. A channel can slope upward, downward or sideways. Traders expect a given security

or currency to trade between the two levels of support and resistance until it breaks beyondone of the levels. They used channel lines to point out where to place "take profit order" and"Stop Loss Order".

You can see below a chart of an upward channel in the S&P 500 Index.

SUPPORT AND RESISTANCE

Support and Resistance are lines that illustrate the ongoing battle between the buyers (the bulls) and the sellers (the bears).

Support levels indicate the price where the majority of investors believe that prices will movehigher. As the price declines towards support and the price become cheaper, buyers becomemore inclined to buy and sellers become less inclined to sell.

Resistance levels indicate the price at which a majority of investors believe that prices willmove lower. As the price moves towards resistance and the price becomes higher, sellers

become more inclined to buy and buyers become less inclined to sell.


28/56


29/56

29

ANALYSIS ON OIL AND GAS SECTOR

Sector Overview

India is the sixth largest consumer of oil in the world and the ninth largest crude oil importer.

Indias oil and gas sector contributes over 15% to the Gross Domestic Product (GDP).

According to Ministry of Petroleum and Natural Gas, India has a total reserve of 1201 millionmetric tonnes of crude oil and1437 billion cubic metres of natural gas as on 01 April 2010.The total number of exploratory and development wells and metreage drilled in onshore andoffshore areas during 2009-2010 timeframe was 428 and 1019 thousand metres respectively.

Crude oil production during 2009-2010 timeframe was 33.69 million metric tonnes and gross production of Natural Gas in the country was 47.51 billion cubic metres during 2009-2010.The production of petroleum products during 2009-2010 was 151.898 million metric tonnes

(Ministry of Petroleum & Natural Gas).

However, due to huge demand-supply gap in oil and gas in India, it imports more than 60%of its crude oil requirement.

Further, oil consumption in India is projected to enhance by 4-5% per annum to 2015,indicating a demand of 4.01 million b/d by 2015.

As per the Business Monitor International (BMI) forecast, India will account for 12.4% ofAsia Pacific regional oil demand by 2015, while satisfying 11.2% of the supply.

Due to increasing refining capacities, exports of petroleum products are high in terms of theforeign currency amassed and accounts for 17% of the total exports. Indias exports ofrefined products stood at 0.95 million barrels per day as of June 2011 and US$ 4.6 billionworth of petroleum products were exported during July 2011. Vastness of this sector iscorroborated by the fact that there were a total of 130,000 people employed in the petroleumindustry in 2009-2010.

Investment Policy

Government has taken many initiatives to boost investment in this sector. 100% FDI isallowed for Indian companies in refineries. Also 100% FDI is allowed for petroleum productsand pipeline sector, natural gas and for infrastructure related to petroleum productsmarketing.

Indian Government has abolished the administrated pricing policy.

New Exploration Licensing Policy (NELP) was introduced by the Government of India toenhance exploration activity in the country. The aim of the policy is to provide a level

playing field to all the parties, private and public, to compete on equal terms for the award ofexploration acreage. NELP has received an encouraging response so far. A total of 246


30/56

30

blocks were awarded under the eight bidding rounds (from 2001 to November 2010) and 68oil and gas discoveries have been made so far in the NELP blocks. With NELP it has helpedencourage further explorations for oil and gas reserves in India. In small & medium sized oilfields, 100% FDI is permitted via competitive bidding.

Various measures are also being taken to substantially accelerate exploratory activities forenhancing domestic oil and gas production. These are Improving the recovery factor fromexisting major fields by implementing Enhanced Oil Recovery (EOR)/Improved OilRecovery (IOR) schemes-in particular, exploring new areas, especially in deep waters anddifficult frontier areas, as also the deeper layers of already producing fields; and developingnewly discovered fields speedily and stepping up the use of new technologies for seismicsurveys, work over, stimulation operations, drilling of wells etc. in producing areas.

The petroleum and natural gas sector attracted US $ 3,152 million of FDI inflows from April2000 to March 2011.

Market Highlights

The oil industry can be divided into three major components: upstream, midstream anddownstream. The upstream segment comprises Exploration and Production (E&P) activities.The midstream segment is involved in storage and transportation of crude oil and natural gas.The downstream segment is engaged in refining and production of petroleum products, and

processing, storage, marketing and transportation of commodities such as crude oil and

natural gas.

In India crude oil is produced Onshore and Offshore. Onshore fields are in Assam/Nagaland,Arunachal Pradesh, Gujarat, and Tamil Nadu/ Andhra Pradesh. Oil India Limited (OIL) andOil and Natural Gas Commission (ONGC) have the onshore field for crude oil production.Offshore production occurs at Bombay High run by ONGC and Private/Joint Venturecompanies. For natural gas, onshore fields are at Assam, Tripura, Gujarat, Tamil Nadu,Andhra Pradesh and Rajasthan. Offshore production of natural gas takes place at the Westernarea of Bombay High.

India has 20 refineries out of which 17 are in the public sector and three in the privatesector. The total number of retail outlets of Public Sector Oil Marketing Companies in 2010was 36462. The total number of LPG consumers of Public Sector Oil Marketing Companiesin 2010 were 114.952 million.

Few of the SEZs in this sector are Reliance Petroleum SEZ, Mangalore SEZ in Karnataka,Gujarat Hydrocarbons and Power SEZ and Nagarjuna Oil Corporation in Tamil Nadu.


31/56

31

Major Players

Public sector corporations dominate the Indian exploration and production sector. In terms ofthe percentage share in total production Oil and Natural Gas Corporation (ONGC) accountsfor the highest share.

The second major player in the sector is also a public sector undertaking Oil India Limited(OIL). Both of these undertakings account for about more than 70% of the total market. Theremaining share of the pie is cluttered with various private players in the market.

Names of the key players in the oil and gas industry in India are Oil India Ltd., Oil and Natural Gas Commission, Indian Oil Corporation, Hindustan Petroleum Corporation Ltd.,Bharat Petroleum Corporation Ltd., Gas Authority of India Ltd., Reliance Industries Ltd.,Essar Oil, Adani Gas, Petronet LNG, Cairn Energy, Shell, British Gas and BP.

Sector Prospects

India has significant potential to discover new oil and gas basins since 78% of the co untryssedimentary area is yet to be explored. Recent large-scale oil and gas discoveries in theKrishna Godavari and Rajasthan basins have amply demonstrated this potential.

Exploration and production spend in the country has doubled from about US$ 2.5 billion in2004 05 to about US$ 5 billion in 2007 08. Overall E&P spend is expected to be in the rangeof US$ 90 110 billion in the next 7 10 years.

This will also create a sustained demand for oil field services like drilling rigs, offshoresupport vessels, tubular goods, and seismic services and equipment for constructing process

platforms, pipelines and collecting stations, as well as other surface facilities fortransportation of oil and gas from wells to delivery points.

The countrys gas pipeline cover age has increased substantially and has significant potentialfor further expansion. India currently has a trunk gas pipelines network of 9,900 km with atransmission capacity of 292 MMSCMD.

Domestic gas supplies are expected to increase significantly from the new domestic gas fieldsand LNG capacity. GAIL (India) Ltd is planning to lay 6,663 km of gas pipelines by 2012 13at an estimated costs of US$ 6.3 billion, which will provide ample opportunities for gastransmission, engineering, Engineering Procurement Construction (EPC) and pipeline-manufacturing companies.

India is also rising as a potential refining hub because the capital costs are lowered by 25 50% here in comparison to other Asian countries. Its share is 3% of the capacity worldwideand is going to improve further by 45% over the next 5 years, according to a report compiled

by Deutsche Bank.

The power and fertilizer sectors in India drive the demand for gas in the country. The demand

for gas is set to grow; thus, the natural gas share in the overall mix is projected to rise from8% to 20% by 2025.


32/56

32

ANALYSIS ON OIL &GAS INDUSTRIES

Oil and Natural Gas Corporation Limited (ONGC )

SNAPSHOT OF THE COMPANY

During pre-independence, the Assam Oil Company in the North-Eastern and Attock Oilcompany in North-Western part of undivided India were the only oil companies producing oil

in the country. The major part of Indian sedimentary basins was deemed to be unfit fordevelopment of oil and gas resources.

After independence, the Government realized the importance of oil and gas for rapidindustrial development and its strategic role in defence. Consequently, while framing theIndustrial Policy Statement of 1948, the development of the hydrocarbon industry in thecountry was considered to be of utmost necessity.

Until 1955, private oil companies mainly carried out exploration of hydrocarbon resources ofIndia. Assam Oil Company was producing oil at Digboi, Assam (discovered in 1889) and the

Oil India Ltd. (a 50% joint venture between Government of India and Burmah Oil Company)was engaged in developing two fields Naharkatiya and Moran in Assam. In West Bengal, theIndo-Stanvac Petroleum project (a joint venture between Government of India and StandardVacuum Oil Company of USA) was engaged in exploration work. During pre-independence,the Assam Oil Company in the North-Eastern and Attock Oil company in North-Western partof undivided India were the only oil companies producing oil in the country. The major partof Indian sedimentary basins was deemed to be unfit for development of oil and gasresources.

More than half century survival in oil and gas industry is a record of work by Oil and NaturalGas Corporation Limited (ONGC). It was originated in the year of 1956 as a private sectorcompany. Later, in the year 1993 the company was came to known as Public SectorCompany. ONGC`s habitual activities deals with exploration, development and production ofCrude Oil, Natural Gas, LPG and some other value added petroleum products such as NGL,C2-C3, Aromatic Rich Naphtha and Kerosene. The company going along with two of itsfolds namely ONGC Videsh Limited (OVL) and Manglore Refinery & PetrochemicalsLimited (MRPL) and ten of Joint Ventures/Associates. ONGC`s Basins are totally seven innumbers, Western Offshore Basin (Mumbai & Baroda), KG Basin (Rajamundary), CauveryBasin (Chennai), Assam & Assam-Arakan Basin (Jorhat), CBM-BPM Basin (Kolkata) and


33/56

33

Forntier Basin (Dehradun) and ONGC has two plants situated in Uran and Hazira. Thecompany covers five regions such as Mumbai, Baroda, Nazira, Chennai and Kolkata and alsoONGC running eleven institutes for different specialisation in different locations.

During March 1999, ONGC, Indian Oil Corporation (IOC) and Gas Authority of IndiaLimited (GAIL) both of three agreed to have cross holding in each other`s stock to pave theway for Long-term strategic alliance amongst themselves for the domestic and overseas

business opportunities in the energy value chain. The ONGIO International Pvt Ltd wasincorporated in the year 2001 as 50:50 joint venture projects with Indian Oil Corporation Ltdwith aim of providing Training, Consultancy & Services in Hydrocarbon Sector and latercompany has decided to wind up ONGIO due to loss. During 2001-02 the augment recoveryfrom onshore fields of 13 projects 2 were resourcefully commissioned. By the end of thesame year 2001-02 the company `s subsidiary unit ONGC Videsh Ltd commenced itscommercial production of gas.

In the year of 2004 ONGC initiated Phase-I of a collaborative project on CBM in Jharia Fieldand successfully completed the same in 2005. During 2004-05 the company discovered itsthird deep-water exploration campaign `Sagar Samriddhi` in Krishna-Godavari (KG) Basin atthe location Vashistha (VA-1A) in block KG-OS-DW-IV. In the western offshore a shallow-water oil and gas was recorded in D-33, about 60 Kilometers South-West of Mumbai High,Onshore, Oil and Gas was found in Tiphuk-1 in North Assam Shelf and Oil was struck atWamaj in Cambay Basin. Offshore, four new Platforms (2 Well Platforms, 1 ProcessPlatforms and 1 Clamp-on) were Commissioned for enhancing production. New trunk

pipelines are being laidsub-sea from Mumbai High Field to Urban Oil and Gas processingfacility.

In March 2005 ONGC launched its retail marketing business with commissioning of its firstautofuels outlet at Manglore under the brand `ONGC Values` and `Shopp`njoy` for fuel andnon-fuel business respectively. The company has also received approval/license from theGovernment for marketing of non-subsidised LPG cooking gas, Kerosene and Aviationrefueling sales. Tripura Power Development Company Pvt Ltd (TPDCL) was incorporated toset up a gas-based power-generating project in Tripura. TPDCL has been renamed as ONGCTripura Power Company Pvt Ltd after the domination. In the same year the company hasentered into various alliances in form of execution of Memorandum of Understanding withKakinada Seaport & IL&FS with 26% equity stake for development of Port based SEZ atKakinada, Andhra Pradesh. During the year 2006 the company was awarded 60 out of 110exploration blocks by the Government in the five NELP rounds. Out of these 60 NELPBlocks 35 are in the form of unincorporated joint ventures and remaining blocks are

company`s 100% participating interest.


34/56

34

In December 2009, the company entered into two broad enabling agreements with Iranianauthorities for participation in development of gas fields and liquefaction facilities in Iran, inreturn for assured minimum 6 million tonne LNG per annum on long term basis. Also,ONGC Videsh entered into a non exclusive memorandum of understanding (MOU) toexplore the possibilities of jointly studying and if mutually agreed, to participate in attractiveoil and gas assets in Russia and third countries. In June 2010, Stealth Ventures Ltd enteredinto a Joint Study Agreement (JSA) with the company to evaluate emerging UnconventionalResource plays and opportunities in India. The objective of the JSA is to identify theunconventional resource plays within India, and a high priority has been given by both

parties, to identify high growth profile shale gas and CBM prospects, on the basis of the largedatabase available within ONGC. In December 2010, the company`s subsidiary, ONGCVidesh Ltd signed a Framework Agreement on Cooperation in Hydrocarbon Sector in Delhiwith Sistema, a public financial corporation in Russia and CIS.

The Government of India has decided to disinvest 5% paid up equity capital of ONGC out ofGovernment shareholding.

HIGHLIGHTS OF RESULTS IN MARCH 2014 Revenue growth of the company has increased by 1.08% annually with 83888.93 crs. Total Income has come at Rs 90602.16crs which is also an annual gain of 2.43% Expenditure has decreased by 5% as compared to last year. PBDT has jumped to 11% as compared to last year. Net Profit has grown to 6% compared to last year, Rs.22094.81 crs. EPS is at 25.83 up by 6% as compared to last year. CEPS is at 38.6 up by 13% as compared to last year. OPM% & NPM% has increased by 10% & 4% respectively as compared last year.

Valuations & views of the Analyst:

Looking at the overall performance of the company, analysts are below on the numbers andhence it has been undervalue a BUY short term not long term rating from them. The targetexpected by the analyst below is 213.32 which itself is a 4.39% doun on the principals.

Disclaimer: I may or may not hold position in this stock

ONGC CMP:406.7


35/56

35

SHARP CORRECTION ON THE CHARTS.

Also, The trend for this stock has a consistent downward movement on the charts by giving a"fresh break down" in near term.

The pattern on the charts have lower tops and lower bottoms as the support level which hasbeen "broken" signaling that the prices are expected to move downwards in the near term.

Technical indicators like Parabolic S&R, along with EMA 6 v/s 30, MACD, RSI, volume supportsthe trends therefore validating all the parameters we recommend a sell on rise for the stockwith a target of 613.40 & 566.22 and stop loss would be close above 368.

Disclaimer: I MAY OR MAY NOT HOLD POSITIONS IN THE ABOVE MENTIONED STOCKS


36/56

36

RELIANCE INDUSTRIES LTD

SNAPSHOT OF THE COMPANY:

The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest privatesector enterprise, with businesses in the energy and materials value chain. Group's annualrevenues are in excess of US$ 66 billion. The flagship company,

Reliance Industries Ltd is an India-based company. The company is India`s largest privatesector company on all major financial parameters. They are the first private sector companyfrom India to feature in the Fortune Global 500 list of "World`s Largest Corporations" andranks 117th amongst the world`s Top 200 companies in terms of profits. The companyoperates world-class manufacturing facilities across the country at Allahabad, Barabanki,

Dahej, Hazira, Hoshiarpur, Jamnagar, Nagothane, Nagpur, Naroda, Patalganga, Silvassa andVadodara .

The company operates in three business segments: petrochemicals, refining, and oil and gas.The petrochemicals segment includes production and marketing operations of petrochemical

products. The refining segment includes production and marketing operations of the petroleum products. The oil and gas segment includes exploration, development and production of crude oil and natural gas. The other segment of the company includes textile,

retail business and special economic zone (SEZ) development .

In the year 1966 the RIL was founded by Shri Dhirubhai H.Ambani, it was started as a smalltextile manufacturer unit. In May 8, 1973 RIL was incorporated and conformed their name asRIL in the year 1985. Over the years, the company has transformed their business frommanufacturing of textiles products into a petrochemical major.

accepted internationally due to their high quality during the year 1997-98 and in the sameyear Reliance Industries Planned to invest around Rs. 5000 crores (USD 1,250 million) in

building two world-scale plants at the site of the Jamnagar refinery in Gujarat. In 1998-99,RIL introduced packaged LPG in 15 kg cylinders under the brand name Reliance Gas.

In 1999-2000, RIL commissioned the world`s largest 1.4 million tonnes per annumParaxylene (PX) plant at its new integrated petrochemicals complex at Jamnagar which was

planned at 1997-98. Reliance Petroleum Limited (RPL) was amalgamated with RelianceIndustries Ltd in the year 2002-03.

During the year 2007-08, the company signed an agreement to certain polyester (capacity)assets of Hualon, Malaysia. It took over the majority control of Gulf Africa PetroleumCorporation (GAPCO) and started shipping products to the East African markets. Also, the


37/56

37

company signed MoU with GAIL (India) Ltd to explore opportunities of setting up petrochemical plants in feedstock rich countries outside India.

In April 2008, the company signed gas sales and purchase agreement (GSPA) with thecustomers in power sector for supply of natural gas to be produced from the KG-D6 block.

During the year, Reliance Petroleum Ltd (RPL) merged with the company with effect fromApril 1, 2008. From April 2, 2009, the company commenced production of hydrocarbons inits KGD6 block in the Krishna Godavari basin with the production of sweet crude of 420API. In November 2009, the company discovered first oil exploration in the on landexploratory block CB-ONN-2003/1 (CB 10 A&B) awarded under the NELP-V round ofexploration bidding. In December 2009, the company discovered gas in the exploration blockKG-DWN-2003/1 (KG-V-D3) of NELP-V. The deepwater block KG-DWN-2003/1 is located

in the Krishna basin, about 45 kilometers off the coast in the Bay of Bengal.

In December 2010, the company entered into a joint venture agreement with Russian petrochemical company SIBUR for the production of butyl rubber in India. The joint venturefacility will have an initial capacity of 100,000 tonnes of butyl rubber at the company`sintegrated refining cum petrochemical site in Jamnagar and is expected to be commissioned

by 2013.

In January 2011, the company`s wholly owned subsidiary, Reliance Ventures Ltd entered intoan agreement with Infrastructure Leasing and Financial Services Ltd, whereby IL&FS will

become a strategic partner and co-promoter of a project which intends to develop a modeleconomic township and other infrastructure facilities at Jhajjar in Haryana.

In February 2011, the company entered into a strategic partnership with BP which comprisesBP taking a 30% stake in 23 oil and gas production sharing contracts that the companyoperates in India for a consideration of USD 7.20 billion and the formation of a 50:50 joingventure between the two companies for the sourcing and marketing of gas in India. The jointventure will also endeavour to accelerate the creation of infrastructure for receiving,transporting and marketing of natural gas in India.

.In November 2011, the company and BP incorporated India Gas Solutions Pvt Ltd, a 50:50 joint venture company which will focus on global sourcing and marketing of natural gas inIndia. The joint venture company will also develop infrastructure to accelerate transportation

and marketing of natural gas within the country. India Gas Solutions Pvt Ltd will be fundedwith equal equity from BP and RIL.


38/56

38

HIGHLIGHTS OF RESULTS IN MARCH 2014

Revenue growth of the company has increased by 8.27%annually with 390117 crs. Total Income has come at Rs 399053 crs which is also an annual gain of 8.35% Expenditure has increased by 9.02% as compared to last year. PBDT has jumped to 2.4% as compared to last year. Net Profit has grown to 4.67% compared to last year, Rs.22094.81 crs. EPS is at 68 up by 4.93% as compared to last year. CEPS is at 95.21up by 0.09% as compared to last year. OPM% & NPM% has decresed by 0.05% & 0.03% respectively as compared last

year.


Looking at the overall performance of the company, analysts are positive on thenumbers and hence it has been upgraded a BUY rating from them. The targetexpected by the analyst is 1264.87 which itself is a 2.87% gain on the principals.


RELIANCE INDUSTRIES LTD:997.68


39/56

39

LONG TERM MARKET TREND OF SIEMENS LTD IS BEARISH WITH LOWER TOPAND LOWER BOTTOM, WHEREAS IN NEAR TERM STOCK HAS GIVEN A FRESHBREAKDOWN SIGNALING A DOWNTREND IN STOCK IN NEAR AND SHORTTERM.

TECHNICAL INDICATORS LIKE, ADX, GMMA, IKH, MACD, ALSO INDICATING ADOWNTREND IN NEAR TERM.BEST TRADING STRATEGY FOR PROFIT HUNTERSIS TO SELL THE STOCK AT CMP OR AT RISE WITH THE TARGET OF 1482 ANDSTRICT STOP-LOSS OF 925 ON CLOSING BASIS.



40/56

40

Cairn India

SNAPSHOT OF THE COMPANY

Cairn India Ltd is one of the biggest private sector exploration and production companies in

India. The company is primarily engaged in the business of surveying, prospecting, drilling,

exploring, acquiring, developing, producing, maintaining, refining, storing, trading,

supplying, transporting, marketing, distributing, importing, exporting and generally dealing in

minerals, oils, petroleum, gas and related by-products. The company also holds interests in

their subsidiary companies which have been granted rights to explore and develop oil

exploration blocks in the Indian sub-continent.

Cairn India operates 30 per cent of Indias domestic crude oil production. Through its

affiliates, Cairn India has been operating for close to 20 years playing an active role in

developing Indias oil and gas resources. To date, Cairn India has opened 4 frontier basins

with over 40 discoveries, 31 in Rajasthan alone.

The company is participant in various oil and gas blocks/fields (which are in the nature of

jointly controlled assets), granted by the Government of India through Production Sharing

Contracts (PSC) entered into between the Company and Government of India and other

venture partners. The company has two processing plants11 platforms, 200 km of sub-sea

pipelines and operations spreading across the Indian sub-continent. The company-owned

three oil fields namely Ravva, Lakshmi and Gauri are producing more than 80,000 barrels of

oil per day (boepd) for Cairn and their joint venture partners.


41/56

41

Cairn India was incorporated on August 21, 2006 as a subsidiary of UK-based Cairn Energy

PLC. The company was incorporated primarily to engage in the business of surveying,

prospecting, drilling and exploring for, acquiring, developing, producing, maintaining,

refining, storing, trading, supplying, transporting, marketing, distributing, importing,

exporting and generally dealing in minerals, oils, petroleum, gas and related by-products and

other activities.

During the year, the company acquired all the shares of Cairn India Holdings Ltd (CIHL) and

consequently CIHL became a wholly owned subsidiary of the company. CIHL is also a

holding company for 26 other companies. Consequently, all these companies became

subsidiaries of the company.

In January 9, 2007, the company was listed on the Bombay Stock Exchange and the National

Stock Exchange of India. The Initial Public Offering (IPO) of Cairn India was the then largest

IPO in the Indian primary equity markets and with a market capitalisation in excess of USD

12 billion ranks as the fourth largest oil and gas company in India.

During the year 2008-09, the CIG Mauritius Holding Pvt Ltd, CIG Mauritius Pvt Ltd, Cairn

Lanka Pvt Ltd and Cairn Energy Developments Pte Ltd became subsidiaries of the company.

In June 2010, Cairn India and ONGC, the 70:30 joint venture partners in the Rajasthan Block,

RJ-ON-90/1, commenced sales through the world`s longest continuously heated and insulated

crude oil pipeline.

In the year 2011, Cairn Energy Developments Pte Ltd, subsidiary company in Singapore was

voluntarily dissolved with effect from 8 March, 2011. In order to simplify and consolidate the


42/56

42

multi layered structure comprising foreign subsidiaries, the company proposed a scheme of

arrangement between Cairn India Ltd, Cairn Energy India Pty Ltd, Cairn Energy India West

B.V., Cairn Energy Cambay B.V., Cairn Energy Gujarat B.V. The scheme is now subject to

receipt of certain contractual and regulatory approvals. The scheme when approved is

proposed to be effective from 1 January, 2010.

During the year, Vedanta acquired 155,033,172 number of equity shares under the open offer.

Vedanta also acquired 200,000,000 equity shares of the company from Petronas International

Corporation Ltd. Subsequent to these acquisitions, Vedanta now holds 18.66% of the equity

capital of the company.

Cairn Energy PLC was approached by Vedanta Resources Plc with a proposal to purchase the

majority of Cairn Energy PLC`s equity in the company. The proposed transaction was agreed

and announced by the two companies in August 2010, and approved by the shareholders of

Cairn Energy PLC and Vedanta Resources Plc in fourth quarter financial year 2010. The

transaction is currently awaiting approval from the Government of India.


Revenue growth of the company has increased by 0.08% annually with 9927.53 crs. Total Income has come at Rs 11829.17 crs which is also an annual gain of 0.17% Expenditure has increased by 0.23% as compared to last year.

PBDT has jumped to 0.15% as compared to last year. Net Profit has dicresed to 0.49% compared to last year, Rs.7454.33 crs. EPS is at 39.03 down by 0.49% as compared to last year. CEPS is at 45.27 down by 0.45% as compared to last year. OPM% & has increased by 0.07% &NPM% has dicresed by 0.53% respectively as

compared last year.


43/56

43


Looking at the overall performance of the company, analysts are positive on the numbers andhence it has been upgraded a BUY rating from them. The target expected by the analyst is357.33 which itself is a 0.27% gain on the principals.


CAIRN INDIA CMP:345.35

The stock on long term charts has been heavily volatile and do not indicate a bull run or a bear fall on a consistent basis. However currently post consolidation, the stock has fallen below the support level of 386 to close 338.3 at and on technicals can see a new low in thecoming trading session. Traders are advised to stay from the the stock till a new advance isseen on charts.

Disclaimer: I do not have investments in the mentioned stock.


44/56

44

Bharat Petroleum Corporation Ltd.


Bharat Petroleum Corporation Ltd (BPCL) operates in the petroleum industry in India. The

company operates in a single segment - Refinery and Marketing activities, which includes

Downstream petroleum sector. They are also engaged in the Exploration and Production of

Hydrocarbons (E&P). BPCL on a regular basis imports their LPG requirements mainly from

the Middle East. Occasional there are import requirements of Gasoil, Kerosene, Gasoline and

Base Oil. The company refineries consist of Mumbai Refinery, Kochi Refinery, Numaligarh

Refinery and Bina Refinery. BPCL exports Fuel Oil and Naphtha and Base Oil (Group II).

Bharat Petroleum Corporation Ltd was incorporated on November 3, 1952 as a private

limited company with the name Burmah Shell Refineries Ltd. The company began their work

on the marshland of Trombay at Bombay. The refinery on 454 acres of land at village Mahul

went on-stream on 30th January 1955, one year ahead of schedule. In January 24, 1976,

Burmah Shell Group of Companies was taken over by the Government of India to form

Bharat Refineries Ltd. In August 1, 1977, the company was renamed as Bharat Petroleum

Corporation Ltd. The company was also the first refinery to process newly found indigenous

crude (Bombay High), in the country.

During the year 2001-02, the company commissioned the Gas Turbine and Heat Recovery

Steam Generator project at a cost of Rs.1750 million. Refinery Modernization Project was

being implemented at a cost of Rs 18,310 million. This project besides improve distillate

yield and energy efficiency of the company. The company had Allied Retail Business (ARB)

also apart from the regular business, making them not only the largest non-fuel revenue


45/56

45

generator in the oil industry, but also amongst the leading retail networks in the country,

offering a basket of services ranging from C-stores, Quick Service Restaurants to financial

and travel related services.

The total of 8 numbers of In & Out convenience stores made up the "millionaire club" by

clocking average sales of Rs 1 million per month. Automatic Teller Machines (ATMs)

continued by the company to be a focus area in the ARB initiative under the alliance

management strategy. The 222 ATMs in the network are the result of alliances with 22 banks.

Given the rapid growth of the travel industry in the country and especially personal travel, the

company launched "In & Out e-Traveller", a one-stop facility for all travel and hospitality

needs in during year of 2006-07. The In & Out eTraveller is an e-ticketing / e-booking

facility for rail, air and bus tickets and hotel accommodation, brought through a web of

alliances with best in breed travel service providers.

During the year 2009-10, the Mumbai refinery processed the Nigerian crude oil - Agbami for

the first time. The company started operations at its Bina refinery in the central Indian state of

Madhya Pradesh by launching their crude distillation unit, or CDU. The CDU at Bina was

commissioned on June 29, 2010. Kerosene and cooking gas have been despatched to the

marketing terminal. An oil refinery`s CDU is the main unit where crude is separated into

different petroleum products.

In August 2010, Indian Oil Corporation Ltd, Bharat Petroleum Corporation Ltd and

Hindustan Petroleum Corporation Limited entered into a memorandum of understanding (M

OU) with Gujarat State Petroleum Corp Ltd to form a joint venture for trunk gas pipelines. In

February 2011, the company signed an initial agreement with the provincial government of


46/56

46

Rajasthan to sell fuel products from the state`s proposed refinery. The company will sell at

least 75% of the volume of the products from the proposed Rajasthan refinery under the

agreement.

In July 2011, the company sold a rare naphtha cargo from Haldia to Vitol at steep discounts

of $63.00 a tonne to Middle East quotes on a free-on-board (FOB) basis, and the refiner may

have more of such cargoes for sale.

The company plans to rise the capacity at its just commissioned Bina refinery in Madhya

Pradesh to nine million tonne and is looking at the right time for a public offering of the unit.

The company is planning to bid for city-gas projects in Kochi (Kerala) and Hyderabad

(Andhra Pradesh) and plans to launch 600 new fuel retail outlets this fiscal, according to S

Vardarajan, director, corporate finance. The company has lined up investments of Rs 50,000

crore ($11 billion) to expand their capacities in refining, retail and upstream projects over the

next five years.


Revenue growth of the company has increased by 8.30% annually with 260060.53crs.

Total Income has come at Rs 261529.19 crs which is also an annual gain of 8.16% Expenditure has increased by 7.67% as compared to last year. PBDT has jumped to 0.37% as compared to last year. Net Profit has grown to 0.45% compared to last year, Rs.4060.88 crs. EPS is at 56.16 up by 0.54% as compared to last year. CEPS is at 87.23 up by 0.38% as compared to last year. OPM% & NPM% has increased by 0.13% & 0.42% respectively as compared last

year.


Looking at the overall performance of the company, analysts are positive on the numbers and

hence it has been upgraded a BUY rating from them. The target expected by the analyst is712.96 which itself is a 2.06% gain on the principals.


47/56

47


BPCL CMP:581.4

Trend is bearish on charts whereas it is regularly trading with lower top &lower bottom,resulting a short bearish trend is visible on charts. In short term weekly charts stock has givena downtrend breakout and is expected to attract selling pressure on dips.

Technical Indicators like Moving Average is bullish on charts whereas volumes haswitnessed heavy selling pressure on near term rallies. Parabolic Stop & Reversal also

indicates a bearish pattern on charts.

Calculating all the above technical parameters stock is expected to rally in short & mediumterm with a target of 795.60 & 734.40 with a strict stoploss of close below 539.00.

Disclaimer: I MAY OR MAY NOT HOLD POSITIONS IN THE ABOVE MENTIONEDSTOCKS


48/56

48

Gail India Ltd


GAIL (India) Ltd is India`s flagship Natural Gas Company, integrating all aspects of the

Natural Gas value chain (including Exploration & Production, Processing, Transmission,

Distribution and Marketing) and its related services. The company is an integrated energy

company along the Natural Gas value chain with global footprints. They have interest in the

business of natural gas, LPG, Liquid Hydrocarbons and Petrochemicals. They have also

diversified into Exploration & Production, City Gas Distribution and are steadily developing

their overseas presence.

GAIL (India) Ltd was incorporated on August 16, 1984 as a public limited company with the

name Gas Authority of India Ltd. At the time of incorporation, all of the shares were held by

the Government of India. Initially, the company started as a gas transmission company during

the late eighties, they grew organically over the years by building a large network of natural

gas trunk pipelines covering a length of 7850 km.

The company was established to lay an onshore pipeline from Hazira on the west coast to

supply natural gas to facilities in the states of Gujarat, Rajasthan, Madhya Pradesh and Uttar

Pradesh. In the year 1986, they started the construction of the pipeline and they completed in

the year 1988.

In 1991, the company constructed their first LPG plant at Vijiapur. In 1992, they took over

certain of the Regional Pipelines from ONGC and completed their second LPG plant at


49/56

49

Vijiapur. Also, in the year 1993, they completed a third LPG plant at Vaghodia. In the year

1995, the Government sold 28.5 million equity shares, representing 3.4% of the company`s

equity capital, to domestic and qualified foreign investors. In May 1995, they formed

Mahanagar Gas Ltd as a joint venture with British Gas and the Government of Maharashtra

and own 49.75% of the equity shares.

In 1998, the company completed LPG plants at Usar and Lakwa. In April 1998, they formed

PLL, a public limited company under the Companies Act, in which they hold a 12.5% equity

interest. In July 1998, they completed upgradation of the pipeline, compressors and various

terminals along the HVJ pipeline. In December 1998, the company formed Indraprastha Gas

Ltd as a joint venture with BPCL and own 22.5% of the equity shares in Indraprastha.

In February 1999, the Government sold approximately 30.6 million shares, representing a

further 3.6% of the equity capital to various domestic and foreign institutional investors in a

private placement. In March 1999, the Government sold approximately 5% of the equity

capital to each of IOC and ONGC, representing a total of 81.7 million shares.

In March 1999, the company commissioned their petrochemical complex at Pata. Also, they

purchased from the Government 2.5% of their equity interest in ONGC, representing a total

of 34.3 million shares, for Rs.5.6 billion. In October 1999, the company entered into a

Memorandum of Understanding with ONGC to purchase natural gas from existing

discoveries, which are under production. In March 2000, the company commissioned

additional LPG plants at Pata. Also, they commissioned additional LPG plants at Gandhar in

March 2001. In June 2001, they invested in Gujarat State Energy Generation Ltd and own

12.85% of their equity shares.


50/56

50

In November 22, 2002, the name of the company was changed from Gas Authority of India

Ltd to GAIL (India) Ltd. In June 2003, the company completed the LPG pipeline between

Vizag and Secunderabad. In September 2003, the company formed Bhagyanagar Gas Ltd, a

joint venture with HPCL, and own 25% of the equity shares.

During the year 2004-05, the company established a wholly owned subsidiary company,

namely GAIL Global Singapore Pte Ltd. They incorporated Tripura Natural GasCo Ltd and

UP Central Gas Ltd as the joint venture for city gas project in Tripura and Kanpur. The

company acquired 15% equity stake in NatGas, Egypt. They signed an agreement for the

acquisition of 9% equity stake in China Gas Holdings Ltd, a joint venture for city gas projects

in 42 cities of China. The company commissioned Vizag-Secunderabad LPG Pipeline during

the year.

During the year 2007-08, the company completed a major pipeline project from Dahej to

Dabhol via Panvel to supply gas to RGPPL which started supplying much needed power to

the state of Maharashtra. The company signed Gas Sales Agreement with Pragati Power for

gas supply to Bawana Power Plant. Also, they executed Gas Supply Agreements with major

suppliers like ONGC, PMT etc for augmentation of gas supplies. The company entered into

Gas Transmission Agreement (GTA) with Reliance Gas Transportation Infrastructure

Limited (RGTIL) for Transmission of natural gas from the Krishna-Godavari (KG) basin.

In order to strengthen the business activities in the area of Petrochemicals, the company

signed an MOU with Reliance Industries Ltd for exploring opportunities for setting up a

mega petrochemical complex outside India in one of the gas rich countries. Also, they signed


51/56


52/56

52

During the year 2009-10, the company completed commissioning of various pipelines having

a total length of about 700 km, including Dadri - Bawana pipeline for supplying gas to

Pragati Power Corporation Ltd and Chainsa- Sultanpur Pipeline, which will facilitate

supplying about 34 MMSCMD gas to around 65 customers. In March 2010, the company

commissioned a wind energy project of 4.5 MW capacity at Sinoi (Anjar), District Bhuj in

Gujarat, at a cost of Rs 27.7 crore.

During the year 2010-11, the Company completed various pipelines having length of about

761 kilometers which includes Vijaipur-Dadri Pipeline (498 km), Sultanpur-Neemrana

Pipeline (175 km) and Focus Energy Pipeline (88 km). The company siccessfully

commissioned a wind energy power project of 4.5 MW capacity at Sinoi in Kutch District of

Gujarat at a cost of Rs 27.7 crore. As of March 31, 2011, the Company had seven liquefied

petroleum gas (LPG) plants.

In October 2010, the company commenced construction of the Karanpur - Moradabad -

Kashipur - Rudrapur / Pant Nagar Natural Gas Pipeline at Kashipur. The entire project is

targeted to be completed by January 2012. In January 2011, the company`s joint venture

Brahmaputra Cracker and Polymer Limited (BCPL) is implementing the Assam Gas Cracker

Project by setting up a $1.2 billion petrochemical complex in Lepetkata, Assam. The initial

planning phase started in 2007, and the project is scheduled to be commissioned in April

2012.

In June 2011, the company and Karnataka State Industrial & Infrastructure Development

Corporation Ltd (KSIIDC) signed a joint venture agreement to jointly pursue various natural

gas related business activities in Karnataka. The joint venture agreement will lead to the


53/56

53

formation of a joint venture company which will have an authorized share capital of Rs 1

billion. GAIL will hold 26% equity in the company, while KSIIDC will have 24%. The

balance 50% equity will be held by Financial Institutions, Investors and strategic partners.

In September 2011, the company incorporated a wholly owned subsidiary GAIL Global

(USA) Inc in USA which acquired working interest to the extent of 20% in Eagle Ford assets

(Shale assets) held by Carrizo Oil and Gas Inc. in USA.


Revenue growth of the company has increased by 0.21% annually with 57507.93 crs. Total Income has come at Rs 58406.45crs which is also an annual gain of 0.21% Expenditure has increased by 0.23% as compared to last year. PBDT has jumped to 0.08% as compared to last year. Net Profit has grown to 0.09% compared to last year, Rs.4375.21 crs. EPS is at 34.49 up by 0.09% as compared to last year. CEPS is at 43.76up by 0.11% as compared to last year. OPM% & NPM% has dicreased by 0.09% & 0.10% respectively as compared last

year.


Looking at the overall performance of the company, analysts are positive on the numbers andhence it has been upgraded a BUY rating from them. The target expected by the analyst is486.66 which itself is a 0.73% gain on the principals.



54/56

54

GAIL INDIA LTD CMP:437.8

Trend is bullish on charts whereas it is regularly trading with higher tops &bottoms, resultinga strong bullish trend is visible on charts. In short term weekly charts stock has given a

positive breakout and is expected to attract buying pressure on dips.

Technical Indicators like Moving Average is bullish on charts whereas volumes haswitnessed heavy buying pressure on near term rallies. Parabolic Stop & Reversal alsoindicates a bullish pattern on charts.

Calculating all the above technical parameters stock is expected to rally in short & mediumterm with a target of 504.40 & 465.60 with a strict stoploss of close below 367.0

Disclaimer: I may or may not hold position in the above mentioned stock.


55/56

55

CONCLUSION

Buying and selling of stock is not an easy task if you want to make money doing it. Millions

of investors have lost the money in past trying guessing stock price movements. In order to

consistently make money in the stock market, investors have to be right over 70% of the time.

In todays world, if you rely on fundamental analysis, brokers advice newspaper, articles or

business channels for your investing or trading decisions, you are asking for a painful

experience in the markets. So, this study on technical analysis will help the investors in

analyzing the scripts based on the technical tools and oscillators to earn fruitful investment.

Technical analysis is the art and science of chart patterns in order to better analyze and

predict prices of a given security. It is also becoming popular with the younger generation.

But further research has to be conducted to know whether the technical analysis alone will

guarantee profits to the investors. Knowledge of the stock markets is the key to the success

and emphasis should be on managing trading risk while technical analysis can help you to

control them.


56/56

santosh mms projects

Documents