BEL - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 3.7

📊 Chart Patterns & Trend: BEL is in a corrective phase after testing its 52-week high of 436 ₹. The current price (393 ₹) is below the 50 DMA (404 ₹) but above the 200 DMA (375 ₹), indicating medium-term strength but short-term weakness. The stock is consolidating near support levels with weak momentum signals.

📈 Moving Averages:

- Price above 200 DMA confirms medium-term bullish undertone.

- Trading below 50 DMA shows short-term weakness.

- Breakout above 404–410 ₹ could trigger momentum toward 430–436 ₹.

📉 RSI: At 33.7, RSI is weak and close to oversold territory, suggesting limited buying strength but potential for a bounce.

📉 MACD: Negative (-7.77), confirming bearish crossover and short-term weakness.

📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions and possible short-term support.

📊 Volume Trends: Current volume (80,67,054) is slightly below the 1-week average (83,66,816), showing reduced participation and lack of strong buying interest.

🎯 Entry Zone: 385–395 ₹ (near support).

🎯 Exit Zone: 420–430 ₹ (near resistance trendline and 52-week high).

⚡ Support Levels: 375 ₹ and 350 ₹.

⚡ Resistance Levels: 404 ₹ and 436 ₹.

Positive

• Strong ROCE (39.4%) and ROE (29.5%) highlight excellent capital efficiency.
• Debt-free balance sheet ensures financial stability.
• Quarterly PAT growth (1,286 Cr. vs 969 Cr.) shows strong earnings momentum.
• DII holdings increased (+0.28%), reflecting domestic investor confidence.

Limitation

• High P/E (50.5) compared to industry average (57.9), suggesting premium valuation.
• RSI weak at 33.7, showing limited buying strength.
• MACD negative, confirming short-term weakness.
• Volume participation weaker than average, limiting momentum.

Company Negative News

• FII holdings decreased (-0.42%), showing reduced foreign investor interest.
• MACD bearish crossover signals short-term weakness.
• Stock corrected from its 52-week high of 436 ₹.

Company Positive News

• Quarterly PAT increased 17.9%, showing strong profitability growth.
• EPS of 7.77 ₹ supports earnings visibility.
• DII inflows (+0.28%) reflect confidence in fundamentals.

Industry

• Industry P/E at 57.9, slightly higher than BEL’s 50.5, suggesting fair valuation.
• Defense and electronics sector outlook remains strong with rising government spending and order inflows.

Conclusion

⚖️ BEL is consolidating with weak RSI and negative MACD, showing short-term weakness but medium-term resilience. Traders may consider entry around 385–395 ₹ with exits near 420–430 ₹. The stock is consolidating, awaiting breakout above 404–436 ₹ for trend continuation.