Stay away from NHPC advises Bhamre

According to him, Siddharth Bhamre of Angel Broking, one can stay away or accumulate shares of NHPC around Rs 18-18.5 levels.

Bhamre told CNBC-TV18, “We have seen huge unwinding of 37-38 percent in NHPC and stock corrected around 23-24 percent. NHPC is widely held stock. So if selling comes that selling should have been observed by people who are interested in buying this stock.”
He further said, “If you look at the news which is coming out that 3 crore shares have been sold by XYZ party because of financing issues, the average volume in NHPC on any normal day is around 2.5-3 crore shares. So why would any sane person who holds 3 crore shares would make such a big impact and sell his entire stock in two-three days time frame? So it is more than what is meeting the eye in NHPC. We can understand in other midcap name which is not widely held going down this way. So one can stay away or think of accumulating around Rs 18-18.5 NHPC.”
 ”There is lot of covering which has happened in few of the large cap names like ICICI Bank where we are suggesting to go long. Yesterday we did see some kind of built up but rollovers have happened quite less in most of the counters and that is why the reason you are seeing that the open interest in stock Futures is coming down,” Bhamre added.
 “There are a lot of other stocks which have gone down and have reduced their open interest. There are some stocks which have bounced and have reduced open interest. So the very negative stance which people had on infrastructure space, some of the capital goods space which have reduced open interest yesterday that has resulted into loss of nearly 8.5 crore shares in stock futures’ open interest.”