Sep 13, 2013, 01.39 PM IST | Source: CNBC-TV18

Sell BHEL, advises Shardul Kulkarni

Shardul Kulkarni of Angel Broking recommends selling Bharat Heavy Electricals (BHEL) as the stock may move below Rs 100 in the next couple of weeks. "One may also sell Larsen and Toubro (L&T) at around Rs 840-850 as the stock may touch Rs 760-770 over the next couple of sessions," he adds.

Shardul Kulkarni of Angel Broking told CNBC-TV18, "Capital goods stocks have perked up a bit in today's trading session and overall they have moved higher in the last couple of days also along with the market. But Bharat Heavy Electricals (BHEL) has a very strong lower top or lower bottom cycle. The stock was extremely oversold at Rs 100 and from there it has bounced 40 percent but the overall chart structure unfortunately has not changed."

"Any move towards Rs 145 should be used as an opportunity to exit. We see BHEL moving back to those Rs 100 levels over the next couple of weeks. So, the bias would be negative in case of BHEL," he said.

"After the IIP numbers yesterday, Larsen and Toubro (L&T) has moved higher but I don't think that the overall chart structure has changed. I don't think that a 2 percent move dictates the chart structure. So near Rs 840-850 it will be a  good time to sell into the stock. I would say that possibility of Rs 770-760 being tested over the next couple of sessions is quite high."

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