BHEL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.4
| Stock Code | BHEL | Market Cap | 1,47,134 Cr. | Current Price | 423 ₹ | High / Low | 425 ₹ |
| Stock P/E | 93.2 | Book Value | 76.2 ₹ | Dividend Yield | 0.12 % | ROCE | 8.35 % |
| ROE | 6.11 % | Face Value | 2.00 ₹ | DMA 50 | 348 ₹ | DMA 200 | 288 ₹ |
| Chg in FII Hold | 0.95 % | Chg in DII Hold | 4.23 % | PAT Qtr | 1,283 Cr. | PAT Prev Qtr | 382 Cr. |
| RSI | 74.2 | MACD | 24.8 | Volume | 1,14,03,650 | Avg Vol 1Wk | 1,01,50,624 |
| Low price | 205 ₹ | High price | 425 ₹ | PEG Ratio | 2.45 | Debt to equity | 0.31 |
| 52w Index | 99.0 % | Qtr Profit Var | 154 % | EPS | 4.53 ₹ | Industry PE | 36.6 |
📈 Chart & Trend Analysis: BHEL is trading at ₹423, well above its 50 DMA (₹348) and 200 DMA (₹288), confirming a strong bullish trend. RSI at 74.2 indicates overbought conditions, suggesting caution for fresh entries. MACD at 24.8 shows strong positive divergence, supporting upward momentum. Bollinger Bands place the price near the upper band, signaling potential short-term resistance.
📊 Volume Trends: Current volume (1,14,03,650) is slightly higher than the 1-week average (1,01,50,624), showing strong participation and sustained buying interest.
🔑 Support & Resistance: Key support levels are at ₹348 (50 DMA) and ₹288 (200 DMA). Strong resistance is near ₹425 (recent high). Optimal entry zone: ₹380–₹400. Exit/profit booking zone: ₹420–₹425.
📉 Momentum Signals: RSI suggests overheated momentum, while MACD confirms bullish strength. Short-term signals favor cautious accumulation on dips rather than chasing highs.
📌 Trend Status: The stock is trending upward but showing signs of near-term consolidation due to overbought RSI.
Positive ✅
- Quarterly PAT surged (₹1,283 Cr vs ₹382 Cr), showing strong earnings growth.
- FII holding increased (+0.95%), reflecting foreign investor confidence.
- DII holding surged (+4.23%), showing strong domestic institutional support.
Limitation ⚠️
- High P/E ratio (93.2) compared to industry average (36.6) suggests overvaluation.
- ROCE (8.35%) and ROE (6.11%) remain modest, indicating limited capital efficiency.
- Dividend yield of 0.12% is unattractive for income-focused investors.
Company Negative News ❌
- Low EPS (₹4.53) despite strong profit growth.
- Debt-to-equity ratio of 0.31 adds leverage risk.
Company Positive News 🌟
- Quarterly profit variance at 154% highlights operational turnaround.
- Both FII and DII holdings increased, boosting investor sentiment.
Industry 🏭
- Power equipment and engineering sector benefiting from infrastructure and energy investments.
- Industry P/E at 36.6 indicates moderate valuations compared to BHEL’s premium.
Conclusion 📌
BHEL is in a strong uptrend, supported by robust earnings growth and institutional buying. However, extreme RSI levels suggest caution for fresh entries. Optimal strategy: accumulate near ₹380–₹400 support zones and consider profit booking near ₹420–₹425. Trend remains upward, but consolidation is likely in the short term.
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