Buy BHEL on dips, says CK Narayan

CK Narayan, Managing Director at Growth Avenues told CNBC-TV18, "Bharat Heavy Electricals (BHEL) has been climbing very steadily because of high degree of scepticism and when the results came the stock got bashed on the Rs 197 low, it actually made a higher bottom somewhere around Rs 205-207 and then subsequently the stock has really been building higher bottoms which is a clear indicator that long-term buyers are probably stepping into the stock. "

"As it were we are seeing some noises or green shoots being envisaged in the capital goods area. We are seeing several other, even the smallcap-midcap area in the capital goods area seeing some amount of upward traction. So lots of people are still very sceptical about the prospects of BHEL but there seems to be some very determined large scale buyers who are there and they will probably carry the day. So I wouldn’t really bet on any upward resistance right now. I would look for any big dip, any market led dip which brings about a reaction in BHEL and use that to buy," he added.