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The outlook for the stock of Bharat Dynamics is bearish. Although the stock has been consolidating sideways for about a week, the bias on the chart is negative. The range of trade has been ₹717-₹758. The chances are high for the stock to break this range on the downside below ₹717. Such a break can drag it to ₹650 and ₹635. Intermediate resistance within the range is at ₹748. Above₹758 will be the range resistance.
Traders can go short now. Accumulate shorts at ₹746. Stop-loss placed at ₹761. Trail the stop-loss down to ₹715 as soon as the stock falls to ₹705. Move the stop-loss down to ₹690 as soon as the stock touches ₹675. Book profits at ₹665. The bearish outlook will get negated only if the stock sustains above ₹717 and breaches ₹758 this week itself. In that case, a rise to ₹780 can be seen initially and then ₹835 can be targeted later. But the price action on the chart coupled with a moving average cross-over on the daily charts leaves the possibility less for a sharp rise from here. So, a fall below ₹717 is more likely to be seen.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)
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