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The stock of Bharat Dynamics has jumped 5.7 per cent with above average volume on Thursday, breaking above a key long-term resistance at ₹384. This rally provides short-term investors an opportunity to buy the stock at current levels. Following a corrective short-term downtrend from the early March high of ₹391, the stock found support at ₹325 in late April. Subsequently, the stock reversed direction and started to trend upwards. Since then, the stock has been in a medium-term uptrend. Short-term trend is also up. The stock trades well above the 21- and 50-day moving averages. There has been an increase in volume over the past three trading sessions. T
he daily as well as the weekly relative strength index (RSI) are featuring in the bullish zone backing the uptrend. Further, the daily and the weekly price rate of change indicators are hovering in the positive terrain signifying buying interest. Overall, the short-term outlook is bullish.
The stock has potential to trend upwards and reach the price targets of ₹423 and ₹432 in the ensuing trading sessions. Traders can buy the stock with a stop-loss at ₹397 levels.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)
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