Comments
Investors with a short-term perspective can consider selling the stock of BEML at current levels. The stock encountered a significant long-term resistance in the band between ₹1,850 and ₹1,900 during August and September this year and reversed direction. After registering a new high of ₹1,947 in late September, the stock has been on a medium-term downtrend. Short-term trend is also down for the stock.
While trending down, the stock decisively breached its 21 and 50-day moving averages in early November and trades well below them. On Wednesday, the stock tumbled 3.7 per cent conclusively breaching its key short-term support at ₹1,600 and has closed below its 200-day moving average.
There has been decrease in daily volume over the past two weeks. Both the daily and weekly price rate of change indicators are featuring in the negative territory implying selling interest. The daily relative strength index has entered the bearish zone from the neutral region and the weekly RSI is likely to enter the bearish zone.
Overall, the short-term outlook is bearish for the stock of BEML. It can extend the downtrend and reach the price targets of ₹1450 and ₹1420 in the coming trading sessions. Traders can sell the stock with a stop-loss at ₹1545 levels.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.