A breakout above resistance could take the stock towards ₹430–₹440, the analyst noted.
Bharat Electronics shares fell nearly 2% on Wednesday, taking its monthly loss to over 5%. While its technical charts flash weak momentum in the short term, its strong order book and the government’s policies could support its long-term growth.
SEBI-registered analyst Deepak Pal noted that on its daily chart, BEL was consolidating after a recent decline from higher levels. The stock is trading near ₹380, with support around ₹372–365 levels and resistance at ₹390–405.
Technical Indicators
The stock was hovering around 20 & 50-day Exponential Moving Average (EMA), showing a sideways trend. Its Relative Strength Index (RSI) stood at 39, indicating weak momentum, but oversold conditions may provide short-term recovery.
Its Moving Average Convergence Divergence (MACD) shows a bearish crossover, suggesting caution, while the parabolic SAR dots are above the price, indicating selling pressure.
What Should Investors Do?
In the short term, Pal expects the stock to remain rangebound between ₹365 and ₹405. In the medium-term, a breakout above ₹405 could take it towards ₹430–₹440, while a breakdown below ₹365 may invite further downside.
Fundamental View
Its FY25 revenue growth was supported by a strong order book (~₹75,000 crore). And the defense PSU has reported consistent profitability with a return-on-equity of over 20%.
Pal highlighted that it was a zero-debt company with healthy cash reserves. And the stock traded at a reasonable price-to-earnings ratio (P/E) compared to peers in the defense sector.
Additionally, strong order inflow from the Defense Ministry, increased budget allocation, and favourable government policies are expected to augur well for the sector at large.
Triggers To Watch
Going ahead, Pal noted that the Q2 results (expected in Oct 2025) would be a key factor to watch. Strong execution is expected, and investors must keep an eye on order book updates. Also, any fresh order announcements can boost stock sentiment. Higher government allocation will positively impact BEL’s
long-term growth.
What Is The Retail Mood?
Data on Stocktwits shows that retail sentiment has remained ‘neutral’. It was ‘bullish’ earlier this month.
BEL shares have gained 27% so far this year.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<