Keep away from BHEL: Ashwani Gujral
"These stocks have to be bought only when they are at levels from where the margin of safety is extremely high. So there is probably more bearishness on BHEL before it moves up sustainably. "
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| Updated: Ashwani Gujral, Chief Market Strategist, ashwanigujral.com in an interview with ET Now talks about BHEL.
What is the call on BHEL?
It is time that people realise the difference between good companies and good stocks. BHEL is a great company. You can hear a half an hour kind of sermon on what are the great fundamentals but the stock is not performing. At 1900, it finds support, has a shallow rally.
The day 1900 gets taken out for whatever reason, on that day we will probably find a reason, it will rush pretty fast to about 1700. These stocks have to be bought only when they are at levels from where the margin of safety is extremely high. So there is probably more bearishness on BHEL before it moves up sustainably. So you need to keep away from both BHEL and Reliance.
What is the call on BHEL?
It is time that people realise the difference between good companies and good stocks. BHEL is a great company. You can hear a half an hour kind of sermon on what are the great fundamentals but the stock is not performing. At 1900, it finds support, has a shallow rally.
The day 1900 gets taken out for whatever reason, on that day we will probably find a reason, it will rush pretty fast to about 1700. These stocks have to be bought only when they are at levels from where the margin of safety is extremely high. So there is probably more bearishness on BHEL before it moves up sustainably. So you need to keep away from both BHEL and Reliance.
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