The stock of BEML gained 7.7 per cent breaching the 21- as well as the 50-day moving averages on Thursday. This rally has strengthened the stock’s bullish momentum and the investors with a short-term perspective can buy it at current levels. Since February this year, the stock has been in a medium-term sideways consolidation phase in a wide range between ₹785 and ₹1,020. Following a corrective decline from the upper boundary, the stock found support at around ₹785 in late June. Subsequently, the stock bounced up strongly accompanied by good volume.
The stock is in a short-term uptrend, within the sideways movement. The recent rally has reinforced the bullish momentum and the stock trades well above the 200-day moving average. The daily relative strength index is charting upwards in the neutral region and the weekly RSI is also trending up. Moreover, the daily price rate of change indicator hovers in the positive terrain implying buying interest. The stock has the potential to trend upwards in the short-term and reach the price targets of ₹955 and ₹975. Traders can buy with a stop-loss at ₹899.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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