The stock of Bharat Dynamics (BDL) jumped 6.8 per cent accompanied by above average volume on Tuesday, strongly breaking above a key long-term resistance at ₹400. Investors with a short-term horizon can buy the stock at current levels. Since recording a 52-week low at ₹147 in late March this year, the stock has been in a medium-term uptrend.
Following a corrective decline, it took support at ₹354 in mid-June and continued to trend upwards. The stock has been in a short term uptrend since mid-June. The recent rally above ₹400 has underpinned the bullish momentum. Moreover, the stock trades well above its 21- and 50-day moving averages.
The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI continues to feature in the bullish zone. Further, the daily as well as the weekly price rate of change indicators hover in the positive terrain implying buying interest. Short-term outlook is bullish for Bharat Dynamics. It can extend the uptrend and hit the price targets of ₹438 and ₹447 in the forthcoming trading sessions. Traders can buy the stock with a stop-loss at ₹412 levels.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)