Buy Bhel, Vedanta & Tata Communications; avoid Delta Corp: CA Rudramurthy

CA Rudramurthy, Founder, Vachana Investments, says “I will be a buyer at BHEL at current market price. And I will keep a strict stop-loss of Rs 124 and look at targets of around Rs 133 first to come and then to those levels of Rs 145 to 150. So buy BHEL. avoid Delta Corp. Vedanta has shown clear signs of reversal. I will be a buyer in Vedanta, looking at targets of Rs 235 with a stop-loss of Rs 226. Tata Communication also looks very strong to me. I will be a buyer looking at targets of Rs 1,750 with a stop-loss of Rs 1,695.”


What do you make of this breakout in Vodafone Idea? Also while there is no new news flow as such today but Macrotech Developers saw quite a bit of action?
First of all a word on Idea. For the last four trading sessions, this stock has definitely shown positive price action with volume. So, for me this is a breakout which will stay. So, the breakout which has happened now at around Rs. 12.50 will continue and we have also seen yesterday a close of about Rs. 12.50. So, this stock is headed upwards and can move towards levels of around Rs. 17-20 range., I will keep a stop loss of Rs. 12 and continue holding if I have Vodafone or even buy at current level looking at targets of Rs. 17-20 with a stop loss of Rs. 12.

When it comes to Macrotech Developers, again this stock, after sideways consolidation for a long time, on Thursday is giving a breakout. Based on the current market price, I presume the close will definitely be above that breakout zone of around Rs. 830. So, I will look at buying Macrotech at the current market price. I will keep a stop loss of Rs. 800, look at targets of around Rs. 900 initially and even Rs 1,000 soon on Macrotech. So, both these stocks look very positive and the breakout will stay and the market will continue liking these stocks like Macrotech as well as Idea.

What is your take on the charts of Delta Corp as well as BHEL? Both of them have suddenly seen good price-volume action.
When it comes to Delta Corp, there is selling coming in Rs 145-150 zone. And surely there is support for this stock emerging at around Rs 125. So it is just in between. I will be a buyer closer to Rs 125 for trading. On the higher end, at around Rs 145, 150, I will be a seller. So a big move on Delta Corp can come either on the upside or on the downside once this consolidation range is broken out of.

So on the higher side, it has to break at least Rs 150. On the lower side, unless this stock breaks the 125 range decisively, it will remain sideways. As a trader, I will have no positions or no call right now on Delta Corp unless it breaks the range.

But when it comes to BHEL,, this stock is definitely showing signs of strength. It is now going above its 20-day moving average, which was placed at around Rs 125. On Thursday, it is closing above those levels. I will surely be a buyer in BHEL. And this stock should now cross Rs 133 zone which is an intermediary resistance level. Once it crosses these levels of around 133, 135, the stock can go towards levels of around 150.

So I will be a buyer at BHEL at current market price. And I will keep a strict stop-loss of Rs 124 and look at targets of around Rs 133 first to come and then to those levels of Rs 145 to 150. So buy BHEL. avoid Delta Corp.

What is the trade that you are recommending?
Vedanta has shown clear signs of reversal. I will be a buyer in Vedanta, looking at targets of Rs 235 with a stop-loss of Rs 226. Tata Communication also looks very strong to me. I will be a buyer looking at targets of Rs 1,750 with a stop-loss of Rs 1,695.