Technical Analysis

Bharat Electronics (₹121): Buy

Yoganand D BL Research Bureau | Updated on August 09, 2018 Published on August 08, 2018

Investors with a short-term view can buy the stock of Bharat Electronics (BEL) at current levels. Following an intermediate-term downtrend, the stock found support at ₹96.7 in mid-July this year. However, the stock changed direction thereafter triggered by positive divergence in weekly relative strength index and price rate of change indicator.

The stock has been in a nascent uptrend over the last three weeks. Last week, the stock jumped 16.6 per cent accompanied by good volume, decisively breaching the 21- and 50-day moving averages. But, the stock began to pause at around ₹120 recently.

On Wednesday, the stock surged almost 4 per cent with above average volume strengthening the uptrend. With this rally the daily relative strength index has re-entered the bullish zone from the neutral region and the weekly RSI hovers in the neutral region.

The short-term bias is bullish for the stock. It can decisively surpass the current resistance at ₹120 and reach the price targets of ₹126 and ₹128.5 in the ensuing trading sessions. Buy the stock with a stop-loss at ₹118.5.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

Read the rest of this article by Signing up for Portfolio.It's completely free!

What You'll Get

This article is closed for comments.
Please Email the Editor