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Breaking above a key barrier at ₹98, the stock of Bharat Electronics gained 5 per cent accompanied by extraordinary volume on Tuesday. This rally provides traders with a short-term perspective an opportunity to buy the stock at current levels.
Since taking support at the significant long-term support level of ₹75 in early February, the stock has been in a short- to medium-term uptrend. The recent rally has decisively breached the 200-day moving average and hovers well above it. The stock appears to have resumed its short-term uptrend after a small pause around ₹95.
The daily relative strength index has re-entered the bullish zone from the neutral region and the weekly RSI is on the brink of entering the bullish zone from the neutral region. Both daily and weekly price rate of change indicators hover in the positive territory implying buying interest.
The short-term outlook is bullish for Bharat Electronics. The stock can rally further and hit the price targets of ₹105 and ₹107 in the short-term. Traders can buy with a stop-loss at ₹98.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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