BHEL (₹251.10)
Bulls gaining traction
The stock of Bharat Heavy Electricals Limited (BHEL) has been in a correction phase since July. The bulls faced roadblock at ₹330, lost traction, and what followed has been a fall in price. However, the price band of ₹200-220 is a considerable demand zone. The stock posted back-to-back weekly gains on the back of this. Further appreciation is highly likely.
We see the price rising to ₹330 again in the medium-term. Therefore, one can go long at ₹250 and buy more shares at ₹220. Keep stop-loss at ₹190. When the price hits ₹280, alter the stop-loss to ₹240. Tighten the stop-loss to ₹270 when the stock touches ₹300. Liquidate the position at ₹330.
Bharat Dynamics (₹1,149.15)
Trend turns northwards
The share price of Bharat Dynamics dropped significantly over the past few months. While it appeared that the bears were set to drag the stock further lower, there was a sudden shift in the tide. After posting loss for three weeks straight, the scrip rose sharply last week.
This rally has taken the price above the 20- and 50-day moving averages and a trendline resistance, opening the door for more gains. Go long on the stock at ₹1,145 and accumulate when the price dips to ₹1,040. Stop-loss can be at ₹860. When the stock hits ₹1,400, trail the stop-loss to ₹1,200. Raise the stop-loss further to ₹1,400 when the price is up to ₹1,600. Exit the longs at ₹1,750.
Piramal Enterprises (₹1,183.15)
Long-term trend reversal
The stock of Piramal Enterprises broke out of a crucial resistance at ₹1,130 last week. This is a strong sign that the long-term trend is turning bullish. The chart also shows a confirmation of a bull flag pattern on the weekly chart, denoting the positivity. In the coming weeks, the price might see some moderation, probably to ₹1,000.
However, the stock has the potential to see a rally to ₹2,600 over the next couple of years. So, for long-term holding, participants can buy at ₹1,180 and at ₹1,000. Stop-loss can be at ₹600. When the price hits ₹1,850, revise the stop-loss to ₹1,550. At ₹2,250, exit one-third of the holdings. Revise the stop-loss to ₹1,980 for the remaining positions. Exit them at ₹2,600.