Wait and watch for L&T and BHEL: Rajat Bose
In case of BHEL, wait for a level of 264 to about 267. Unless that level is crossed, there is not much of a strength in BHEL either.
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| Updated: Rajat Bose, rajatkbose.com, talks to ET Now on L&T, BHEL.
What is the call on L&T, BHEL?
The stocks hitting fresh 52-week lows like L&T, maybe BHEL is not hitting 52-week low but then it is also very close to that. So that means that these stocks are pretty weak. So either you take Larsen or BHEL or Thermax, any of these stocks, they are looking pretty weak. So there is no point doing any bottom fishing because you never know if there were to be some more negative news on the European front or some domestic issues. These are the weakest stocks and they would be coming for fresh hammering but there is a possibility of a short covering rally that maybe an intraday rally but because the put options are getting written much more in quantity compared to the call option, so there is a possibility that you may see some kind of an upswing in the market maybe later today. At that time, these capital goods stocks might move up. So the benchmark level for L&T would be 1204. If it manages to stay above that, then there is some semblance of a recovery. In case of BHEL, I would wait for a level of 264 to about 267. Unless that level is crossed, I do not see much of a strength in BHEL either.
What is the call on L&T, BHEL?
The stocks hitting fresh 52-week lows like L&T, maybe BHEL is not hitting 52-week low but then it is also very close to that. So that means that these stocks are pretty weak. So either you take Larsen or BHEL or Thermax, any of these stocks, they are looking pretty weak. So there is no point doing any bottom fishing because you never know if there were to be some more negative news on the European front or some domestic issues. These are the weakest stocks and they would be coming for fresh hammering but there is a possibility of a short covering rally that maybe an intraday rally but because the put options are getting written much more in quantity compared to the call option, so there is a possibility that you may see some kind of an upswing in the market maybe later today. At that time, these capital goods stocks might move up. So the benchmark level for L&T would be 1204. If it manages to stay above that, then there is some semblance of a recovery. In case of BHEL, I would wait for a level of 264 to about 267. Unless that level is crossed, I do not see much of a strength in BHEL either.
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