Buy BHEL on dips, advises Manoj Murlidharan Vayalar

Manoj Murlidharan Vayalar of IIFL told CNBC-TV18, "Lot of funds have entered into Bharat Heavy Electricals (BHEL) right from the time it made a low of Rs 98-102. Now the VWAP concept has worked excellent on Jaiprakash Associates and BHEL because these are stocks we believe has been brought in for long-term and when I say long-term it might be two-three years because if one looks into the stock Futures deviation, it clearly says this accumulation is for a big term."

"I would still say BHEL is a buy on dips because the VWAP concept has worked nicely. Till the time we are about Rs 120 if we get a level of Rs 128 that becomes an excellent buy, stoploss should be Rs 124 and then surge can be Rs 160-165 on that. Now this happens in usually two contracts because that is an initial 20-25 percent in terms of the ratio gains that we have set, so BHEL would be a buy close to Rs 130," he said.