BHEL: An attractive buy

K Seshadri

Now that the market recovery is underway, one must taker a re-look at BHEL. The scrip offers a good trade off between risk and reward. The scrip has a bottom risk limited to Rs 202. But as you know, the scrip refused to go down that far. But for a panic dip to Rs 213, it found a bottom at Rs 218. You will also recall that the scrip had established a base line between Rs 258 and Rs 263. It is from here that it launched itself to a peak of Rs 308.

The 90-day moving average is a horizontal line and currently the average is at Rs 260. The recovery in price on Wednesday indicates that the market has got over with the overweight UTI negative fear over the scrip. Buying into this scrip should reward you both in the short term as well as the long term. And this logic applies to FIIs as well, now that the recovery has begun.

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