BEML’s stock depreciated about 15 per cent last week after facing resistance at ₹4,000. However, the broader uptrend is intact and the fall in price is likely to be only a corrective one. Notably, BEML has a support band of ₹3,000-3,250. Notably, a rising trendline and the 50-day moving average coincide at ₹3,000, making it a significant base. On the back of this, we expect the stock to recover in the coming days. It has the potential to rally to ₹3,800. So, one can buy now at ₹3,250 and accumulate when the price dips to ₹3,150. Keep initial stop-loss at ₹2,900. Raise this to ₹3,250 when the price hits ₹3,500. Tighten the stop-loss further to ₹3,500 when the stock touches ₹3,700. Liquidate all the longs at ₹3,800.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)