Sell BHEL; buy ITC: Mohindar

Rahul Mohindar, viratechindia.com advises traders to sell BHEL, the stock may slip to Rs 205-210. However, one can buy ITC.
 
Mohindar told CNBC-TV18, “If we are looking at the index, I think in the very short-term we might see some pressure. 6,040-6,050 on the upside on the Nifty spot is certainly resistance. My own sense is we probably will test 5,940 sometime down this week.”
 
He further added, “Amongst the precious stocks, capital goods is definitely a weakish sector. So Bharat Heavy Electricals Ltd (BHEL) is one I would sell. Probably we would be looking at Rs 205-210 coming in on the stock. The last three-four months we have not broken down the Rs 220 levels but I think it is getting a bit vulnerable now and one can sell around this Rs 227 mark keeping a stop around Rs 237-238 level. So that would be a sell call.”
 
“On the buy side, I still think people who are looking for the safer havens would look at something like ITC even though we have reached new highs on the stock. Rs 327, is a potential target on ITC so one could still look at getting in and if you are looking for a 2-3 week kind of run up.”