Bharat Dynamics (₹315.3): Buy

Yoganand D BL Research Bureau | Updated on November 12, 2020

Bharat Dynamics is Central public sector enterprise under the Defence Ministry

Investors with a short-term perspective can buy the stock of Bharat Dynamics (BDL) at current levels. Following a short-term downtrend from the August high of ₹481, the stock found support at ₹280 in September. Subsequently, it took support in the band between ₹280 and ₹285 in late September and early November. Thereafter, the stock began to trend upwards, breaching the 200-day moving average recently.

On Thursday, the stock gained by 5 per cent with good volume, surpassing a key immediate resistance at ₹306 and the 21- as well as 50-day moving averages. The daily relative strength index is on the brink of entering the bullish zone from the neutral region.

Further, the daily price rate of change indicator features in the positive terrain, implying buying interest, and the weekly indicator is on the brink of entering the positive terrain, indicating buying interest. It has bullish momentum to take the price higher and reach the targets of ₹328 and ₹335 in the ensuing trading sessions. Traders can buy the stock with a stop-loss at ₹308.

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

Published on November 13, 2020

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