The long- as well as the short-term outlook for BHEL (₹75) remains negative. In the short term, the stock can test its most crucial support level of ₹63.40. Immediate resistance is at ₹82 and the next is at ₹92.80. A strong close above ₹92.80 is required for the short-term outlook to turn positive. We expect the stock to move within a range with a negative bias.
F&O pointers: BHEL added 12.30 lakh shares in open interests on Friday in July contracts, while shedding 13.72 lakh shares in the June contracts. Rollover of open positions stood at just 11 per cent to July series, signalling that not many traders are willing to carry-over their positions.
Strategy: Traders can consider going short on BHEL. Keep the stop-loss at ₹82 and revise it to ₹75 if the stock trades in the negative territory on Monday. Traders can aim for an initial target of ₹63. But if the stock opens on a positive note, consider taking short positions with a stop-loss at ₹82. This strategy is for traders who can withstand wild swings, as the strategy will involve huge margin commitments. Traders can hold the position till mid-July.