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The stock of Bharat Electronics Limited (BEL), which established a long-term uptrend at about ₹60 in May 2020. Although, there have been considerable price corrections, especially in August 2020 and March 2021, the direction of the major trend has remind up and the pull-backs were bought into, resulting in the stock aligning with the overall uptrend. The 50-day moving average has been acting as a strong support for the stock.
In July this year, the stock entered consolidation phase and was largely oscillating within ₹178 and ₹190. While it did drop to ₹162 in the first week of August, the stock reversed higher swiftly. The rally continued and last week, the scrip made a decisive close above ₹190, opening the door for further strengthening. Also, the breakout was accompanied by good volume. Even though the stock witnessed a price drop on Monday, it remains above the important support of ₹190. Until the stock lies above this level, the trend will be bullish. Hence, traders can buy with stop-loss at ₹190 for a target of ₹204.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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