Manoj Murlidharan Vayalar of IIFL told CNBC-TV18, "Whenever a reverse arbitrage happen in the market it is a selling in the cash market and buying in the stock futures and that was happening in Ashok Leyland from Rs 22.2 to Rs 23 odd levels. Since the last couple of days from Rs 18.5 levels we are seeing reverse arbitrages being shifted. Therefore, we are seeing some long build-up happening in Ashok Leyland and we are seeing the cash pileup as well. So, it becomes a buy because we are expecting it to bounce back to Rs 20."
"Same is with Crompton Greaves where we are seeing cash come out of Bharat Heavy Electricals (BHEL) and get into Crompton Greaves. The reverse arbitrage is shifting and even in today's trade there is short covering happening and we believe whenever a stock shows characteristic it has a good movement of 12-13 percent. So, we feel Rs 87.5 is what it is trading at; keep a stop loss of Rs 83 and a good target of Rs 98 is what we are expecting on Crompton Greaves," he added. Also Read: BHEL wins Rs 450 crore R&M contract from Mahagenco
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