By Indian benchmark indices kicked off the week on a mixed note despite global uncertainties. The BSE Sensex climbed by 591.69 points, or 0.73%, closing at 81,973.05, while the NSE’s Nifty50 rose by 163.70 points, or 0.66%, ending the day at 25,127.95. Amidst this backdrop, stocks like Hindustan Aeronautics Ltd (HAL), Suzlon Energy Ltd, and Bharat Electronics Ltd (BEL) are capturing traders’ attention with their dynamic movements and potential opportunities.
Hindustan Aeronautics: A Buyer’s Haven
Hindustan Aeronautics Ltd has been making waves on the trading floor. After peaking at around Rs 4,950 on September 4, 2024, HAL experienced a sharp decline of 16%, bringing it back into a crucial demand zone. This drop could be a golden opportunity for investors looking to buy at a lower price.
- Target Price: Rs 4,450-4,500
- Stop Loss: Rs 4,260
The weekly chart reveals a bullish harami candlestick pattern, a strong indicator of a potential price reversal. Additionally, the Relative Strength Index (RSI) shows a V-shaped impulsive structure around the 30 level with bullish divergence. These technical signals suggest that HAL might be poised for an upward movement, making it an attractive buy for traders aiming for gains up to Rs 4,900.
Bharat Electronics: Proceed with Caution
On the flip side, Bharat Electronics Ltd is currently under the scanner for traders. The stock is showing signs of weakness, with the daily RSI consistently hovering below the 50 mark. Moreover, the Ichimoku future cloud is bearish and trending downward, signaling potential further declines.
- Recommendation: Avoid
BEL’s price action remains below the Ichimoku cloud, and it faces resistance near the 50-day Exponential Moving Average (DEMA). This setup suggests that any upward movement might be short-lived, urging investors to either book profits or steer clear of new long positions until clearer signs emerge.
Suzlon Energy: A Cautious Approach
Suzlon Energy Ltd is another stock garnering attention, though with a word of caution. The company recently faced a bearish divergence around the 86 level, leading to a significant 23% correction down to approximately Rs 66. The stock is currently trading within the Ichimoku Cloud, with the upper boundary acting as a strong resistance level.
Key Points:
- Bearish Divergence: Indicates potential reversal in price momentum.
- Current Trading Level: Rs 66
- RSI Status: Below 50
While Suzlon has shown resilience by not deteriorating after 4,000 switching cycles, the RSI below 50 and the position within the Ichimoku Cloud suggest that traders should adopt a wait-and-watch strategy. Entering a new position might be premature until the stock shows stronger support and clearer bullish signals.
Expert Insights: Jigar S Patel Weighs In
Jigar S Patel, Senior Manager – Technical Research at Anand Rathi Shares and Stock Brokers, shares his perspective on these buzzing stocks:
“HAL presents a promising buy opportunity with its recent technical indicators pointing towards a bullish trend. On the other hand, BEL’s current technical setup advises caution due to its bearish signals. Suzlon Energy requires a more measured approach given its recent corrections and RSI readings. Traders should closely monitor these stocks and align their strategies with the evolving market conditions.”