Buy NHPC, says Siddharth Bhamre

Buy NHPC, says Siddharth Bhamre of Angel Broking.

Bhamre told CNBC-TV18, "NTPC has good amount of long positions, which are standing and in the last couple of days we have seen that stock has taken resistance around Rs 171-172 and since then some shorting pressure has been visible on the stock. We might see long unwinding might take this counter down. At the same time we are more bullish on NHPC compared to the bearishness on NTPC."
He further added, "NHPC has been consolidating since long time. Yesterday we saw good amount of built-up happening around 7-8% though stock had come down but Rs 17.5 to Rs 18 is a very strong support. I do not know many fundamentals about the sector but what I can understand is that NTPC is coal based and NHPC is hydro based and because of the coal fiasco people would have some inclination towards non-coal based power company. So NHPC is a good buy at this level both from trading as well as long-term investment perspective and NTPC from a short-term trading perspective is a sell. So this pair trade can be initiated."