BEML - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.5

📊 Chart Patterns & Trend: BEML is in a corrective phase, trading below both 50 DMA (1,898 ₹) and 200 DMA (1,951 ₹). The current price (1,720 ₹) reflects weakness after a sharp decline from its 52-week high of 2,437 ₹. The stock is consolidating near support levels with bearish undertones.

📈 Moving Averages:

- Price below both 50 DMA and 200 DMA confirms bearish sentiment.

- Sustained weakness suggests resistance near 1,900–1,950 ₹.

📉 RSI: At 31.0, RSI is close to oversold territory, indicating potential for a short-term bounce but overall weak momentum.

📉 MACD: Strongly negative (-83.2), confirming bearish crossover and downward momentum.

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

📊 Volume Trends: Current volume (1,34,934) is below the 1-week average (2,36,077), showing reduced participation and lack of strong buying interest.

🎯 Entry Zone: 1,700–1,730 ₹ (near support).

🎯 Exit Zone: 1,880–1,950 ₹ (near resistance trendline and DMA levels).

⚡ Support Levels: 1,700 ₹ and 1,173 ₹ (major support).

⚡ Resistance Levels: 1,900 ₹ and 2,000 ₹.

Positive

• Quarterly PAT turned positive (54.8 Cr.) after a loss in the previous quarter (-63.9 Cr.).
• ROCE (16.1%) and ROE (10.6%) show moderate efficiency.
• Dividend yield of 0.64% provides income return.
• FII holdings increased (+0.15%), reflecting foreign investor confidence.

Limitation

• High P/E (47.2) compared to industry average (33.9), making the stock expensive.
• Weak volume participation compared to average.
• MACD strongly negative, confirming bearish momentum.
• DII holdings decreased (-0.26%), showing reduced domestic investor interest.

Company Negative News

• Stock has corrected sharply from its 52-week high of 2,437 ₹.
• Technical indicators (MACD, RSI) show weakness and oversold conditions.
• Volume trends suggest lack of strong buying support.

Company Positive News

• Quarterly profit recovery with PAT turning positive.
• EPS of 36.5 ₹ supports earnings visibility.
• Dividend payout adds shareholder value.

Industry

• Industry P/E at 33.9, lower than BEML’s 47.2, suggesting premium valuation.
• Capital goods sector outlook remains cyclical with infrastructure demand drivers.

Conclusion

⚖️ BEML is consolidating near support with bearish signals from MACD and weak RSI. Short-term traders may consider entry around 1,700–1,730 ₹ with exits near 1,880–1,950 ₹. The stock is in a corrective phase, awaiting volume confirmation for a breakout above 1,950 ₹ to regain bullish momentum.