Short BHEL, go long in McLeod Russel: Amit Gupta

Amit Gupta of ICICI Securities shared his outlook on stocks like Bharat Heavy Electricals Limited (BHEL) and McLeod Russel (India).

Bharat Heavy Electricals Limited (BHEL) is likely to come down further to Rs 175-180. The stock was hovering around Rs 195-200 levels but now since it has come below Rs 200, we have seen quite aggressive Call writing happening there, says Gupta He explains that despite one or two attempts the stock was unable to breach Rs 200. So, fresh shorts are likely to come in the stock which can bring it down to around Rs 175. So one can look at going short in the stock, he adds. Also read: Short Nifty till 6100-levels; bet on Maruti, M&M: Experts Mcleod Russel from the FMCG space, he says, is performing really well. So, one can look at it from a long side. 30 percent profits for the company come from the export business and since rupee too depreciated, we believe the stock has some more potential to move towards Rs 330 levels, he adds. If one looks at the short build up - it had fallen sharply from Rs 330 or Rs 340 earlier which was last to last month towards Rs 290 levels. But since then it has been forming a base and has started moving up. We believe the short covering is still about to come and around 20-25 percent of short positions are still left in comparison to the last month in this stock, states Gupta.