Rs 54 to Rs 283 in two years: Multibagger power stock overbought on charts; buy, sell or hold?

Shares of multibagger Bharat Heavy Electricals Ltd (BHEL) hit their 52 week high in early deals on Friday. With today’s rally, the PSU stock has risen 254% in a year and gained 427% in two years. The multibagger stock, which closed at Rs 53.8 on April 28, 2022 climbed to a 52 week high of Rs 283.40 on BSE today. It is trading in the overbought zone, signals relative strength index (RSI) of BHEL stock which stands at 72.8.  Investors and traders are bullish on the stock as BHEL shares are trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages. 

Market cap of the power equipment maker climbed to Rs 96,592 crore.

Total 6.72 lakh shares of the firm changed hands amounting to a turnover of Rs 18.68 crore. The stock slipped to a 52-week low of Rs 77.20 on May 29, 2023.

Osho Krishan - Senior Research Analyst - Angel One said, "BHEL has been in a stellar bull run, hovering near its 52-week highs. The stock has gained strong traction in the last couple of trading sessions as it surpassed the previous swing high. On the levels front, the zone of Rs 265-260 should provide cushion to any short term blip, while the strong support is placed around Rs 255-250 subzone. On the higher end, the zone of Rs 284-285 is likely to showcase resilience, and a sustainable breakthrough could only trigger the next leg of rally in the counter.”

Abhijeet from Tips2trades said, "BHEL stock price is  bearish and slightly overbought with strong resistance at Rs 282. Investors should keep booking profits as Daily close below support of Rs 271 could lead to a fall till Rs 246 in the near term."

Ravi Singh, Market Expert said, "The stock has clearly outperformed in the past two to three years as it is expected to continue its bullish momentum due to a good number of order books. Technically, the stock has given a breakout from a triangle pattern and combining with momentum indicators the stock is expected to achieve Rs 315 levels in the near term."

BHEL is one of the largest engineering and manufacturing companies in India engaged in design, engineering, construction, testing, commissioning and servicing of a wide range of products and services with over 180 product offerings to meet the ever-growing needs of the core sectors of economy.