Short Jaiprakash Associates, says Bhamre

Bhamre told CNBC-TV18, "We went wrong in L&T . We had recommended shorting around Rs 1,200 with stop loss of Rs 1,230. That got stopped out in two days. Ever since we have seen huge built up of long positions in L&T and with high volumes, maybe my opinion is biased, but there are too much long positions have been formed in L&T in the last one week."

He further added, "We have seen some kind of long unwinding, which has resulted into a downfall in stock yesterday. We might see further long unwinding, but whether it's a positional short? I have my doubts, it is quite possible where it can come down to Rs 1,200 levels, but right now we are not generating any trade over there."

"I think Jaiprakash Associates can be a good shorting candidate. Reliance Infra , I would avoid because of the news and the high beta nature the stock. I would prefer avoiding L&T, Reliance Infra and probably Jaiprakash Associates is a shorting candidate for me."