There is not more clarity about the company’s fundamentals. Switch to TCS that has shown constant growth over the quarters. The stock has strong resistance at 90 levels which is also the 200 day moving average. There is no momentum in the stock and the intermediate trend is down as well. Switch to TCS.

The company has appointed a new CEO in China and is focussing on Asia. However, the news flow around the company is negative even though there is not much downside to the stock The weekly and daily trend is down and the stock is forming lower tops and bottoms on the charts. Book losses and exit from the counter. Target 48-44.

We have a contrarian call on this stock. It is trading at a very attractive valuation. The company is into paper, cement and electrical business. The paper division of the company suffered because there was water scarcity in the area. It is now back in full swing with the construction of a large water reservoir to take care of future water security. The cement division is also expected to do well on the back of pick-up in demand.

Bharat Heavy Electricals (BHEL) board of directors have given their approval for setting up of a new plant as "Power Equipment Fabrication Plant" at Latur, Maharashtra.Further, the Company has informed that board of directors have accorded their approval for forwarding the proposal for initiating the process of merger of Bharat Heavy Plate & Vessels , which is a wholly owned subsidiary with the Company to Department of Heavy Industry (DHI).