BEL - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

🛠️ Swing Trade Analysis for BEL (Bharat Electronics Ltd)

Swing Trade Rating: 4.2

📊 Technical Overview

Current Price ₹388 slightly below 50-DMA ₹391 but well above 200-DMA ₹330 → potential pullback opportunity in an overall uptrend.

RSI (37.7): Near oversold territory — implies possible short-term bounce.

MACD (-2.67): Bearish crossover — indicates downward pressure, but nearing support.

Volume Surge: Trading volume is significantly higher than weekly average — hints at accumulation during dip.

🔍 Conclusion: BEL is near a technical support zone with early signs of reversal. Good watchlist candidate for a tactical swing.

💼 Fundamental Picture

P/E (51.6) vs Industry PE (68.0) — relatively fairly priced.

PEG Ratio (1.69): Reasonable valuation for expected earnings growth.

EPS ₹7.52, Book Value ₹27.3 — healthy earnings.

ROE (29.3%), ROCE (39.0%) — exceptional profitability metrics.

Zero Debt — makes the financials highly resilient.

Qtr Profit Drop: ₹2,127 Cr → ₹969 Cr — significant decline but previous quarter may have been one-off high.

FII Holding +1.01% — increased foreign interest, a bullish sentiment.

📌 Verdict: Fundamentally strong with high margins and clean financials. Recent profit dip tempers excitement but doesn’t derail swing potential.

🟢 Optimal Entry Price

Ideal buy range: ₹375–₹385

Near psychological ₹380 and technical support zone.

Look for MACD flattening and RSI reversal above 40.

Stop-Loss: ₹365 — below recent swing low.

🔚 Exit Strategy (If Already Holding)

Initial Target: ₹400–₹408 — aligns with resistance near 50-DMA.

Extended Target: ₹425–₹430 — if trend reverses strongly.

Shift to trailing stop-loss at ₹395 once above ₹408.

🧠 Final Thought

BEL stands out for its robust financial structure and strong institutional support. The current dip offers a possible swing setup — provided indicators align and the broader market supports a bounce. It's the kind of name that might not explode overnight but rewards disciplined entries and exits.

Want to compare it against defense peers like HAL or Data Patterns? I’d be happy to dive into that next.

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