⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
BHEL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.6
| Stock Code | BHEL | Market Cap | 89,872 Cr. | Current Price | 258 ₹ | High / Low | 306 ₹ |
| Stock P/E | 112 | Book Value | 71.2 ₹ | Dividend Yield | 0.20 % | ROCE | 4.75 % |
| ROE | 2.00 % | Face Value | 2.00 ₹ | DMA 50 | 268 ₹ | DMA 200 | 254 ₹ |
| Chg in FII Hold | 0.05 % | Chg in DII Hold | 1.08 % | PAT Qtr | 382 Cr. | PAT Prev Qtr | 368 Cr. |
| RSI | 40.0 | MACD | -6.86 | Volume | 1,83,75,833 | Avg Vol 1Wk | 1,05,66,206 |
| Low price | 176 ₹ | High price | 306 ₹ | PEG Ratio | 15.6 | Debt to equity | 0.44 |
| 52w Index | 63.2 % | Qtr Profit Var | 207 % | EPS | 2.30 ₹ | Industry PE | 35.4 |
📈 Technical Analysis
- Chart Patterns: Stock has corrected from highs (306 ₹) and is trading at 258 ₹, showing weakness near resistance levels.
- Moving Averages: Current price is below 50 DMA (268 ₹) but slightly above 200 DMA (254 ₹), indicating short-term bearishness but medium-term support.
- RSI: At 40.0, stock is weak and approaching oversold territory, suggesting limited downside but lack of strong momentum.
- MACD: Negative (-6.86), confirming bearish momentum in the short term.
- Bollinger Bands: Price near lower band, indicating oversold conditions and potential stabilization.
- Volume Trends: Current volume (1,83,75,833) is higher than average weekly volume (1,05,66,206), showing strong selling pressure and volatility.
🎯 Momentum & Trade Zones
- Short-term Momentum: Weak, with bearish signals dominating but possible consolidation near support.
- Support Levels: 254 ₹ (200 DMA), 240 ₹ (major support).
- Resistance Levels: 268 ₹ (50 DMA), 280–306 ₹ (recent highs).
- Optimal Entry: 250–255 ₹ if RSI stabilizes.
- Optimal Exit: 270–280 ₹ unless breakout above 306 ₹ is confirmed.
📊 Trend Status
Stock is consolidating after a strong rally, with bearish short-term signals but medium-term support intact above 200 DMA.
✅ Positive
- DII holding increased (+1.08%), showing domestic institutional confidence.
- PAT growth (382 Cr. vs 368 Cr.) indicates improving earnings.
- 52-week index gain of 63.2% highlights strong long-term performance.
⚠️ Limitation
- High valuation with P/E of 112 vs industry P/E of 35.4.
- Low ROCE (4.75%) and ROE (2.00%).
- Dividend yield at 0.20% is unattractive.
📉 Company Negative News
- High debt-to-equity ratio at 0.44 compared to peers.
- Weak profitability metrics despite revenue growth.
📈 Company Positive News
- DII holding increased (+1.08%), reflecting domestic investor confidence.
- Quarterly profit growth (+207% YoY) shows operational improvement.
🏭 Industry
- Capital goods sector trading at industry P/E of 35.4, much lower than BHEL’s valuation.
- Sector supported by infrastructure growth and government spending on power projects.
🔎 Conclusion
BHEL is technically consolidating with weak short-term momentum but medium-term support intact above 200 DMA. Traders may consider cautious entry near 250–255 ₹ with exit around 270–280 ₹. Long-term investors should wait for breakout above 306 ₹ for fresh bullish confirmation, given high valuations and weak profitability metrics.