L&T may outperform BHEL, says Pradhan

L&T may outperform BHEL, says Mithil Pradhan, Sr. Vice President - Technicals & Derivatives, Violet Arch Capital Advisors.

Pradhan told CNBC-TV18, “When it comes to BHEL I am not very excited. If you look at the pattern, in January-February when BHEL rallied, it actually made a zigzag pattern which is a big corrective pattern. What is happening at this point of time may be attributed to some kind of short covering which I don’t expect to last much longer from here.”
He further added, “I had a look at the relative strength chart of L&T versus Nifty. From a longer term perspective what I see is that L&T has given a breakout against Nifty. Now what it is saying is that it will outperform for a long period of time. Now we actually see this on the charts any which ways. But then L&T remains a top choice because even on daily charts a few days back it has completed a very large zigzag pattern. So it is completely opposite to BHEL. BHEL made a zigzag pattern on the bearish side and L&T made it on the bullish side. So I would suspect that L&T would outperform BHEL at any given point of time.”