Keep Defence Stock BEL on Your Watchlist as It Nears Breakout

Nifty 50 Index Climbs Above Key Level

On Thursday, the NSE benchmark Nifty 50 index successfully closed above the 22,400 mark, accompanied by a slight dip in the volatility index. The sustainability of this upward momentum could pave the way for further gains towards the 22,600 level and beyond. The participation of major players in the banking and IT sectors, along with cues from the US markets, is expected to be crucial going forward.

The markets gained, buoyed by global equities rising on strong US inflation data, which fueled expectations of Federal Reserve rate cuts. Investors are now awaiting the US jobless claims data.

Widespread buying in the closing hour session led to significant gains in key indices during another volatile trading session. Despite foreign institutional investors (FIIs) withdrawing funds from domestic equities, news of new stocks being added to the MSCI index is expected to bring in fresh foreign portfolio investment (FPI) flows, bringing some optimism to the markets.

Defence Stock to Watch on Friday- Bharat Electronics Ltd (BEL)

On Thursday, the share price of Bharat Electronics Ltd (BEL) closed at Rs 239.75, up by nearly 3%. The stock is trading close to its 52-week high of Rs 241.65, registered in April. Technically, the stock has closed at the resistance of a sloping channel, marking its second-highest closing. The higher volume indicates increased demand for shares. BEL is trading above all key moving averages, which have acted as strong support during recent dips. Bollinger bands contraction indicates a potential upward impulse move. Trading 8.72% above the 50-day moving average (50DMA), the MACD is about to give a bullish signal, and the RSI has shifted into the bullish zone. The Stochastic RSI has also given a bullish signal, and the Elder impulse system has formed a strong bullish bar. In short, the stock is poised for a bullish breakout. A move above Rs 238 is positive, with potential to test a new high of Rs 255. Maintain a stop loss at Rs 227.

Keep this defence stock on your watchlist.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.