BHEL has support at Rs 215; target Rs 275-300: Agarwal

Shubham Agarwal, CMT, AVP - Sr Technical Analyst of Motilal Oswal Securities is of the view that Bharat Heavy Electricals (BHEL) has a very good support level of Rs 215 and targets of Rs 275-300.

Agarwal told CNBC-TV18, "Looking at most of the stocks that is again been sliding back towards a long term support area most of the stocks are still in a selling mode though we expect a reversal to happen in the infra as a overall space but that confirmation is yet to happen that we see an outperformance and post that we can say that we will be participating there."

He further added, "In GMR Infrastructure Rs 17-18 is a band where there is a very good long term support on the stock and we feel that, it is a level from where we might see a reversal happening. In terms of Lanco Infratech we might have another 10-15% of a correction, post that we can look for a buying opportunity."

"As a whole infra doesn’t look that lucrative at this point of time but once we have a market reversing on the higher side then we anticipate this is a sector which could be in the next one on the sector rotation chart which can actually lead to further upside. If we talk about some large caps on this space from the CNX Infra composition BHEL is something which has a 6.5% weightage on that index and we feel that that is something which can outperform the other peers and the fall that is happened in BHEL in recent some months can actually be utilized as a buying opportunity. We feel that Rs 215 is a very good support level there and the risk reward is also favorable at the current level for a target of Rs 275-300."