The outlook for the stock of BEML (Bharat Earth Movers Limited) is bullish. The stock has surged 6.9 per cent on Tuesday breaking above the key resistance levels of ₹1,370 and ₹1,420. This also marks the resumption of the uptrend that had begun in March this year.
The level of ₹1,370 can now act as a good resistance-turned-support. Dips below ₹1,400 if seen are likely to get fresh buyers near ₹1,370. As such a fall below ₹1,370 looks less probable at the moment. The current leg of up move that has begun just now can target ₹1,540 initially. A break above ₹1,540 will the pave way for a further rise to ₹1,620-1,630 eventually in the coming weeks. Investors with a short-term perspective can go long at current levels.
Accumulate longs on dips at ₹1,380. Stop-loss can be placed at ₹1,330. Trail the stop-loss to ₹1,475 as soon as the market moves up to ₹1,510. Book partial profits (50 per cent) at ₹1,540 and move the stop-loss further up to ₹1,510 for the balance of the long positions.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)