BHEL rises 5% in 2-day rally; Prabhudas Lilladher says can accumulate this stock
1 min read . Updated: 10 Apr 2023, 04:08 PM IST
Premium- Prabhudas Lilladher said, the 200 DMA lies near 66 levels along with a double bottom pattern. Technically, at 65 levels, well supported by the 200 DMA, Double Bottom formation, and 50% retracement levels, the stock has resistance around 79 levels.
Government-backed industrial valve manufacturing company, BHEL has gained by nearly 7% on Dalal Street in a two days rally. BHEL extended its upside on Monday and crossed the ₹72 mark. Following this, Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher believes that this CPSU stock has given good correction and is well placed for a potential rise ahead. Parekh sees over 19% upside in BHEL in the coming days.
On BSE, BHEL stock ended at ₹71.31 apiece up by nearly a percent. The stock touched an intraday high of ₹72.73 during the trading hours --- gaining by nearly 3% from the previous print.
Last week, on Thursday, BHEL stock closed at ₹70.63 apiece. On this day, the stock also climbed by around 4%.
Taking into consideration the April 10th closing price, then BHEL stock has jumped by around 5% on BSE. But if considering the day's high of ₹72.73, the stock has rallied by nearly 7% on the D-Street.
In a stock radar note, Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher said, BHEL has given a good correction from 92 to 66 (the 0.50% retracement level of the recent rally towards the 52-week high).
Also, she added that the 200 DMA lies near 66 levels along with a double bottom pattern. Technically, at 65 levels, well supported by the 200 DMA, Double Bottom formation, and 50% retracement levels, the stock has resistance around 79 levels.
Parekh believes that " a decisive close above 79 will see new levels in the coming days."
Hence, she added, "The RSI is also well placed and is on the rise with the potential to carry on the momentum still further upside. Maintaining a stop loss of 66, one can accumulate this stock for an upside target of 82-85 levels in the coming days."
BHEL has bagged a strong order of ₹3,700 crore last week. It received an LOI for the supply of strategic equipment for defence sector, which is expected to be delivered over the next 12 years.
In a year, BHEL shares have skyrocketed by over 26% on BSE.
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