Bharat Electronics (₹184.8)

Investors with a short-term perspective can buy the stock of Bharat Electronics at current levels. The stock has been in a long-term uptrend since taking support at ₹91 in April 2016. Both the medium and short-term trends are also up for the stock. After encountering resistance at ₹180 in mid-September 2017, the stock was in a sideways movement between ₹160 and ₹180 for more than a month.

On Tuesday, the stock jumped 5.3 per cent with an upward gap, decisively breaking above the upper boundary at ₹180. The volume accompanied was extraordinary on that session. With the rally the stock has strengthened its short-term uptrend that has been in place since early September.

The stock trades well above its 21- and 50-day moving averages. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI continue to feature in the bullish zone. Both the daily and weekly price rate of change indicators feature in the positive territory implying buying interest. Short-term outlook is bullish for the stock of Bharat Electronics. The stock can extend its uptrend and hit the price targets of ₹192.5 and ₹196 in the ensuing trading sessions. Buy the stock with a stop-loss at ₹181.

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

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