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Investors with a short-term perspective can buy the stock of Bharat Electronics (BEL) at current levels. The stock has been in a medium-term sideways consolidation phase in the wide band between ₹56 and ₹80 since early March.
In early May, the stock found support at the lower boundary (₹56) and bounced up. Within the sideways phase, the stock has been in a near-term uptrend over the past three weeks.
On Thursday, the stock gained 4.4 per cent accompanied by good volume, breaking above a key resistance at ₹68 as well as the 50-DMA. Also, the stock trades well above its 21- and 50-DMAs.
There has been an increase in daily volume over the past three weeks. The daily relative strength index is charting higher in neutral region and is likely to enter the bullish zone from the neutral region. The weekly RSI has entered the neutral region from the bearish zone. Besides, the daily price rate of change indicator features in the positive territory.
The near-term uptrend can prolong in the coming weeks and reach the price targets of ₹72.5 and ₹74 in the upcoming trading sessions. Traders can buy the stock with stop-loss at ₹67.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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