BHEL has broken key supports: Ashwani Gujral

In a chat with ET Now, Ashwani Gujral, Chief Market Strategist, ashwanigujral.com, shares his views on BHEL.

What about BHEL on the charts?

BHEL has broken key supports, actually all capital goods stocks broke down yesterday including ABB, Larsen. So now basically you are looking at another 40 points lower. So that makes it at about 260-270 levels. It probably went close to yesterday but came back. It is finally getting fairly close to those 250-260 levels. It found a lot of support in 2009 at these levels. The chances are that it could head down towards 250-260 but capital goods have started a fresh down leg.

So do you think capital goods stocks especially L&T and BHEL, they are in a confirmed bear market?

They have been in a bear market for a long time. Just that the phase of denial is getting over and people are realising that pedigree does not make stocks go up. All stocks go through their own bear markets and clearly this is one for anything to do with capital goods and infrastructure.