Hind Oil Exploration BUY

Hind Oil Exploration (BUY, CMP Rs170, Target 220)

The stock corrected from a high of Rs169 in May 2006 to a low of Rs60 in March 2007. Since than, it has witnessed an
upmove and is currently trading in the Rs164-174 range. The stock is on an upward swing for last few trading sessions and

is likely to catch momentum. We expect the stock to rally from current levels completing a Rounding Pattern or a Cup and

Saucer Pattern in the coming days. The Daily oscillators are indicating strength as well as momentum. We expect the stock
to head towards our short term targets of Rs220. The daily RSI is also indicating strength in the upmove. Given the   nature
of the pattern formation, spr  ead over the past two years, we recommend a buy. 

BHEL (BUY, CMP Rs2,393, Target Rs2,589)

Bharat Heavy Electrical has an outstanding order book position of about Rs72.6bn , 4.2x FY07 revenues. The company is increasing

its capacity to 15,000MW a year from 6,000MW over the next three years. Recently, BHEL entered into a JV with NTPC and signed

an agreement with the Tamil Nadu Electricity Board to set up a 1,600MW thermal power project using supercritical technology.

The stock has witnessed heavy correction in last few days, which should be used to enter this fundamentally strong counter.