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    BEL shares may jump to ₹400, provided it crosses a short-term target of this chartist


    Shares of Bharat Electronics Ltd. (BEL), the Navratna defence PSU, have rallied 165% in the last 12 months. The stock has risen over 80% so far this year.

    Market expert Ashish Bahety now believes that the BEL stock has the potential to touch levels of ₹400 per share going ahead. “Short-term targets are set at ₹360; if it surpasses ₹360, then we could potentially see a zone up to ₹400 thereafter,” he said.

    Answering a viewer query on CNBC Awaaz, Bahety also suggested investors to maintain a stop loss at ₹320 for the state-run defence equipment manufacture.

    The market expert also said that BEL’s chart structure is very well set up, and it seems there could be momentum to observe in all defense-related stocks before the upcoming budget.

    Even after the budget, if there’s any additional push, it could lead to a bigger rally from here, so holding Bharat Electronics seems advisable, Bahety stated.

    BEL shares had tumbled 20% on June 4, the day of the Lok Sabha election results, falling to as low as ₹230. The shares of BEL have gained in all eight subsequent trading sessions since June 4.

    The stock has given positive annual returns every single year since 2018, during which it had declined 52%.

    On the charts, the relative strength index (RSI) of the stock stood at 70.5, indicating that BEL is trading in the overbought territory. This implies that stock may show pullback.

    The stock has a one-year beta of 1.5, suggesting very high volatility during the same period.

    The counter is also trading higher than 5-day, 20-day, 50-day, 100-day, 150-day and 200-day simple moving averages (SMAs).

    Shares of Bharat Electronics were trading 0.15% lower at 333.35 apiece today. The stock has risen 16% in the last one month.



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