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BEL - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.9

Last Updated Time : 03 Feb 26, 05:01 pm

Technical Rating: 3.9

Stock Code BEL Market Cap 3,20,972 Cr. Current Price 439 ₹ High / Low 462 ₹
Stock P/E 54.0 Book Value 29.1 ₹ Dividend Yield 0.55 % ROCE 39.4 %
ROE 29.5 % Face Value 1.00 ₹ DMA 50 412 ₹ DMA 200 384 ₹
Chg in FII Hold 0.37 % Chg in DII Hold -0.41 % PAT Qtr 1,590 Cr. PAT Prev Qtr 1,286 Cr.
RSI 53.8 MACD 8.45 Volume 10,97,58,230 Avg Vol 1Wk 5,76,19,869
Low price 240 ₹ High price 462 ₹ PEG Ratio 1.74 Debt to equity 0.00
52w Index 89.8 % Qtr Profit Var 20.8 % EPS 8.14 ₹ Industry PE 56.2

📈 Technical Analysis

  • Chart Patterns: Stock is trading close to its 52-week high (462 ₹), showing strong upward momentum from lows (240 ₹).
  • Moving Averages: Current price (439 ₹) is above both 50 DMA (412 ₹) and 200 DMA (384 ₹), confirming bullish trend.
  • RSI: At 53.8, stock is in neutral zone, suggesting balanced momentum with potential for further upside.
  • MACD: Positive (8.45), indicating bullish momentum continuation.
  • Bollinger Bands: Price near upper band, showing strength but caution for short-term overextension.
  • Volume Trends: Current volume (10,97,58,230) is significantly higher than average weekly volume (5,76,19,869), confirming strong participation and bullish sentiment.

🎯 Momentum & Trade Zones

  • Short-term Momentum: Strong bullish momentum supported by volume and MACD.
  • Support Levels: 425 ₹ (near-term), 412 ₹ (50 DMA), 384 ₹ (200 DMA).
  • Resistance Levels: 450 ₹ (short-term), 462 ₹ (recent high).
  • Optimal Entry: 425–435 ₹ range on dips.
  • Optimal Exit: 455–460 ₹ range unless breakout above 462 ₹ is confirmed.

📊 Trend Status

Stock is trending upward with strong momentum. Indicators suggest continuation of bullish trend with possible consolidation near resistance.

✅ Positive

  • Strong ROCE (39.4%) and ROE (29.5%).
  • Debt-free balance sheet (Debt-to-equity: 0.00).
  • Quarterly PAT growth (1,590 Cr. vs 1,286 Cr.), showing earnings strength.
  • 52-week index gain of 89.8% highlights strong investor confidence.

⚠️ Limitation

  • High valuation with P/E of 54.0 vs industry P/E of 56.2.
  • Dividend yield relatively low at 0.55%.
  • Stock trading near resistance (462 ₹), risk of short-term consolidation.

📉 Company Negative News

  • DII holding decreased (-0.41%), showing reduced domestic institutional interest.

📈 Company Positive News

  • FII holding increased (+0.37%), reflecting foreign investor confidence.
  • Strong quarterly profit growth (+20.8%).

🏭 Industry

  • Defense sector trading at industry P/E of 56.2, in line with BEL’s valuation.
  • Sector supported by government defense spending and modernization initiatives.

🔎 Conclusion

BEL is technically strong with bullish signals across moving averages, MACD, and volume. Short-term consolidation may occur near 450–462 ₹, but trend remains upward. Traders can enter around 425–435 ₹ with exit near 455–460 ₹, while long-term investors may hold for breakout above 462 ₹.

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