BHEL, Bank of Baroda may slip further: JK Jain

JK Jain Of Karvy Stock Broking is of the view that if BHEL breach Rs 218 then the stock would see sharp cut, it has strong support at Rs 200. Bank of Baroda may see fresh short and the stock could see Rs 750-740 levels in the near term.

Jain told CNBC-TV18, “Yes if you look at Bharat Heavy Electricals Limited (BHEL) we have seen the stock has continued to underperform. Even post result, the stock has seen huge short positions accumulated in the stock. The breach below Rs 220 – we have seen the stock would head towards Rs 200 levels. The stock is close to the long-term strong support at Rs 200. We don’t see the stock breaching Rs 200 so easily. If at all the stock breach Rs 218 then the stock would see sharp cut. So, we would rather advice to take a contrarian bet and go long keeping a closing basis stop below Rs 200.”
He further added, “As far as Bank of Baroda is concerned we have seen a fresh round of short positions have built up. Across the public sector undertakings (PSUs) I have seen a fresh round of short positions being built up. We had to see, wait for a day or two and if the stock doesn’t bounce in the next couple of days we expect the PSUs to continue underperform and any bounce in this stock can be used for accumulating fresh short position. So Bank of Baroda – one can use the bounce in the stock to accumulate the fresh short and the stock would head down towards Rs 750-740 levels in the near-term.”