Bharat Electronics Limited Stock Forecast

Bharat Electronics Limited stock price ended at ₹297.10 on Friday, after gaining 3.02%.
(Updated on May 24, 2024)

BEL.BO Signals & Forecast

Mostly positive signals in the chart today. The Bharat Electronics Limited stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at ₹266.04 and ₹237.05. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Tuesday, March 19, 2024, and so far it has risen 60.12%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The stock should be watched closely.

Support, Risk & Stop-loss for Bharat Electronics Limited stock

Bharat Electronics Limited finds support from accumulated volume at ₹288.40 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

This stock may move much during the day (volatility) and with a large prediction interval from the Bollinger Band this stock is considered to be "high risk". During the last day, the stock moved ₹13.95 between high and low, or 4.88%. For the last week, the stock has had daily average volatility of 5.09%.

The Bharat Electronics Limited stock is overbought on RSI14 and lies in the upper part of the trend. Normally this may pose a good selling opportunity for the short-term trader, but some stocks may go long and hard while being overbought and the RSI is still moving upwards. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely, and it is of great importance that the stock manages to break the trend before that occurs. Since the Bharat Electronics Limited has been rising for 8 days in a row, the risk over the next couple of days has increased. We don't expect a major reaction as the stock is in very good shape technically, and therefore hold a positive evaluation despite the very short term risk.

Our recommended stop-loss: ₹288.72 (-2.82%) (This stock has high daily movements and this gives high risk. The RSI14 is 84 and this increases the risk substantially. There is a buy signal from a pivot bottom found 48 days ago.)

Trading Expectations (BEL.BO) For The Upcoming Trading Day Of Monday 27th

For the upcoming trading day on Monday, 27th we expect Bharat Electronics Limited to open at ₹294.35, and during the day (based on 14 day Average True Range), to move between ₹286.39 and ₹307.81, which gives a possible trading interval of +/-₹10.71 (+/-3.60%) up or down from last closing price. If Bharat Electronics Limited takes out the full calculated possible swing range there will be an estimated 7.21% move between the lowest and the highest trading price during the day.

With no resistance above and support from accumulated volume @ ₹288.40, some ₹8.70 (2.93%) from the current price of ₹297.10, our system finds the risk reward attractive.

Is Bharat Electronics Limited stock A Buy?

Bharat Electronics Limited holds several positive signals and is within a strong rising trend. As the old saying says, "Let the trend be your friend.'". We therefore consider it to be a good choice at these current levels and we are expecting further gains during the next 3 months.

Current score: 5.719 Strong Buy Candidate Unchanged

Predicted Opening Price for Bharat Electronics Limited of Monday, May 27, 2024

The predicted opening price is based on yesterday's movements between high, low, and closing price.