Bharat Electronics Limited’s stock has made a fresh breakout on Monday and hit a fresh 52-week high of ₹147 before closing near the high point of the session. Thus, the upside potential looks good, and those who are looking for short-term purchases can consider this stock.
Abottoming out last year, the scrip confirmed the bullish trend reversal by breaking out of a double-bottom pattern in June last year. That is, it broke out of the neck level of ₹77 and established a strong uptrend. Though it faced a correction in September, the stock regained momentum after taking support at about ₹87. Following this, the stock decisively rallied past the prior high of ₹119 in early January this year.
However, looking at the past one-month price action, the scrip has largely been moving in a sideways trend, i.e., oscillating between ₹129 and ₹143. Yesterday, it broke out of the consolidation range, opening more room on the upside. Considering these factors, traders can buy the stock with stop-loss at ₹142 for a target of ₹152.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading)