Trade Idea of The Day - Bharat Electronics Ltd Target Rs. 12 - Religare Broking Ltd
Bharat Electronics Ltd
BUY 27 OCT 390 PUT Entry Range 5 – 6 Target 12 Stop Loss 2
Rationale
• From the technical perspective, BEL remains under pressure, with the stock price facing rejection near its short-term moving average of 20-DEMA, indicating continued weakness in the near-term trend. The stock is also sustaining below the falling trendline resistance aligned with the 50-DEMA, keeping the broader structure bearish.
• On the daily chart, BEL has failed to reclaim the 400-405 zone, which coincides with the short-term moving averages and trendline resistance. Sustained trading below this area may attract fresh selling pressure.
• Momentum indicators remain subdued, with RSI hovering near the 40-mark, reflecting weak momentum, while the MACD histogram is trading in a negative trajectory, indicating limited strength in the current recovery.
• On the downside, 390-385 emerges as the immediate support zone, followed by 380. Any pullback towards 400-405 may face selling pressure. The overall bias remains bearish below the 405 zone.
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