Sell BHEL on rally, says Mithil Pradhan

Sell BHEL on rally, says Mithil Pradhan, Violet Arch Capital.

Pradhan told CNBC-TV18, "We have been short on Jaiprakash Associates right at the top to be very honest and we have been short on metals index as well right around 10,500 levels. While, I still remain hopeful for further decline towards 5,100 or 5,130 levels, I think the risk reward at this point of time either in metals or even in capital goods or even in infrastructure names, it is not that favourable at this point of time."
He further added, "Metals index faces a good amount of support around 9,100-9,200 levels, which is very near to the December lows as well. So I would not advice anybody to go short in metal stocks right now."
"As far as BHEL is concerned, I think when the markets rose during January-February of 2012, BHEL completed a 3-way pattern. So this is one stock which I would love to sell on rallies. I am basically looking at something like Rs 222-223 sort of levels. If ECB comes out with something positive today and if we get a rally then I think I would love to short BHEL."