Trade Idea of The Day - Bharat Electronics Limited Target Rs.16 - Religare Broking Ltd
Bharat Electronics Limited
BUY 26 MAY 440 PUT SELL 26 MAY 420 PUT Entry Range 8 – 9 Target Range 16 Stop Loss 5
Rationale
• On the daily timeframe BEL has trading below its key moving average of 20-DEMA and 50-DEMA,indicating witnessed sustained selling pressure. On the upside prices faces multiple rejection, reflecting cautious sentiment.
• From the technical prospect, the price structure remains weak as lower highs and lower lows continue to dominate on the daily chart. RSI is hovering below the 50 mark, suggesting lack of buying strength in the near term.
• The MACD indicator has also turned negative with a bearish crossover, highlighting fading momentum. Any pullback towards the 435-440 zone may attract fresh selling pressure from higher levels.
• For the near term, one can to adopt a “sell on rise” strategy as long as the stock trades below 440. On the downside, immediate support is placed near 420, while a breakdown below this level could extend the decline towards 400 level.
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SEBI Registration number is INZ00017433
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