In early trade today, shares of multibagger Bharat Heavy Electricals Ltd (BHEL) reached a record high of fourteen years. For the sixth session in a row, the PSU stock reached its 52-week high today, indicating significant investor interest in the multibagger stock. On the BSE, the stock increased 9% to a high of Rs 318.15. But even after reaching a record high of Rs 390.69 on the BSE, the BHEL stock is still down 18%. On May 29, 2023, BHEL shares dropped to a 52-week low of Rs 77.20.
The surge in BHEL stock values coincides with brokerage Nuvama's expectation that AMFI will classify PSU stock as largecap in the upcoming June rejig. The firm entered a Strategic Partnership Agreement (SPA) for the railway signaling industry with HIMA Middle East FZE, Dubai, a fully owned subsidiary of HIMA Paul Hildebrandt GmbH, Germany, on May 30, which added to the favorable sentiment around the stock.
A total of 25.84 lakh of the company's shares were traded, generating a revenue of Rs 73.40 crore. PSU's shares increased by 259.42% in a single year and by 57.57% in 2024.
The multibagger stock has entered the overbought zone on charts due to the current leg of the rally, which is shown by its relative strength index (RSI), which is 77.4. The 5 day, 10 day, 20 day, 50 day, 100 day, and 200 day moving averages are all being exceeded by the price of BHEL shares.
The power equipment manufacturer's market value increased to Rs 1.09 lakh billion. With a price estimate of Rs 330, StoxBox's Avdhut Bagkar, a derivatives and technical analyst, is optimistic on the company.
For the stock to start a new leg of breakout, it has to show consistency above the critical selling barrier of Rs 280. Until then, the price action can revisit its accumulation zone, which is the support between Rs. 265 and 260, according to the daily chart. The overall picture is still positive, but a new rally would emerge if the crucial level of Rs 280 is crossed in large enough quantities. The stock may rise to Rs 325–330 levels above 280," he stated.
Angel One's Senior Research Analyst Osho Krishan stated, "BHEL has been on an incredible bull run, trading close to its 52-week highs. The stock has outperformed the prior swing high in the last several trading sessions, indicating significant traction. Regarding levels, the subzone between Rs 255 and 250 offers good support, while the zone between Rs 265-260 should absorb any short-term blips. Higher yet, the area between Rs. 284 and Rs. 285 is probably going to demonstrate resiliency; a strong gain there might only lead to the next phase of the counter rally.
"BHEL stock price is bullish but also very overbought on the Daily charts with next resistance at 339," stated Tips2trades' Abhijeet. Investors should continue booking gains because a daily closing below the 303 support level might soon cause a decline to 261."
With more than 180 product lines to satisfy the constantly expanding demands of the key economic sectors, BHEL is one of the biggest engineering and manufacturing firms in India. It is involved in the design, engineering, building, testing, commissioning, and maintenance of a wide variety of products and services.
