Kkunal V Parar, Vice-President of Technical Research and Algo at Choice Broking said Hindustan Aeronautics Ltd (HAL), Bharat Electronics Ltd (BEL) and Bharat Forge Ltd are among a few defence-linked stocks that look strong on daily and weekly charts. Parar sees healthy upsides on these counters in the short-term.
Hindustan Aeronautics| Target price: Rs 4,450 On HAL, Parar said the stock is exhibiting a positive trend, trading consistently above its 100-day moving average, which indicates underlying strength. Additionally, it has formed an Inverted Hammer candlestick pattern on the daily chart, a bullish reversal signal that suggests potential upward momentum. Further supporting this bullish outlook, the daily RSI momentum indicator has shown a positive crossover, indicating strengthening momentum in the stock.
"Given this technical setup, we anticipate a strong upside move, targeting levels of Rs 5,010 to Rs 5,410, with a strict stop-loss at Rs 4,450," Parar said.
Bharat Forge | Target price range: Rs 1,860-1,980 Bharat Forge is displaying a strong positive trend, consistently trading above its 100-day moving average, highlighting its underlying strength. The stock has found support at its previous bottom, indicating a potential bounceback, Parar said.
"In addition, the daily RSI momentum indicator is trending above its key levels, signaling positive momentum in the stock. Considering this technical structure, we anticipate a strong upside move towards the levels of Rs 1,860 to Rs 1,980, with a strict stop-loss at Rs 1,500," Parar said.
Bharat Electronics | Target price range: Rs 355-380 The Bharat Electronics stock is showing a robust positive trend, consistently trading above its 100-day moving average, underscoring its underlying strength. On the weekly chart, the stock is in a strong uptrend, reinforcing the positive momentum.
"Additionally, the daily RSI momentum indicator is holding firm above the 40 level, suggesting sustained bullish sentiment," it said.
Based on this technical setup, Parar expects a solid upside move towards the Rs 355 to Rs 380 range. He asked traders to keep a strict stop-loss at Rs 280.