Indian equity markets saw decent gains on Monday, with the BSE Sensex climbing 482.92 points (0.66%) to close at 73,606.75, and the Nifty50 rising 153.20 points (0.68%) to settle at 22,753.20. Value buying in select sectors contributed to the positive sentiment, despite ongoing geopolitical concerns and elevated crude oil prices during the busy Q2 earnings season.
As traders look to the next session, several prominent stocks are drawing attention. Jigar S Patel, Senior Technical Research Analyst at Anand Rathi Share and Stock Brokers Ltd, has provided detailed technical insights on Bharat Heavy Electricals (BHEL), Bharti Airtel, and Bank of India.
BHEL: Signs of Weakness, Advise to Avoid
Bharat Heavy Electricals (BHEL) is currently exhibiting a weak technical structure. According to Patel, the stock has broken below its critical support level of Rs 405 and is trading below this mark. This breakdown signals a deterioration in its price structure, raising concerns about potential further declines.
The daily Relative Strength Index (RSI) for BHEL shows a bearish divergence, indicating that underlying momentum was already weakening before the recent price drop. Furthermore, the RSI on the four-hour chart has fallen below the 30 level, highlighting strong selling pressure. While an oversold reading might trigger a temporary bounce, the overall weakness is expected to extend into the daily timeframe.
Anand Rathi advises investors to avoid initiating fresh long positions in BHEL. Those with existing holdings are encouraged to consider exiting on any recovery towards the Rs 410–420 zone, should such a bounce occur.
Bharti Airtel: Positive Outlook, Buy Recommendation
In contrast, Bharti Airtel Ltd maintains a robust positive technical structure. Its share price is consistently holding above the 10-day, 20-day, and 30-day Daily Exponential Moving Averages (DEMA), suggesting a supportive short-term upward trend.
The daily RSI for Bharti Airtel remains above the crucial 50 mark, indicating sustained bullish momentum and a clear advantage for buyers. Based on these technical signals, existing investors are advised to hold the stock, implementing a trailing stop-loss at Rs 1,860, which serves as an important support level.
A sustained move above its current trading range could propel Bharti Airtel towards a potential target of Rs 1,970. However, a decisive breach below Rs 1,860 would weaken the bullish setup and necessitate a re-evaluation of the position.
Bank of India: Exercise Caution, Weak Structure
Bank of India is currently displaying a weak technical structure on its daily chart, suggesting that the stock may remain under pressure in the near term. The Rs 141 level is identified as a significant resistance zone. For any meaningful improvement in its price structure, the stock needs to move decisively above this level.
The daily RSI for Bank of India is trading within the bearish range of 20–60, indicating that selling pressure continues to dominate and bullish momentum is limited. A sustained recovery is unlikely as long as the RSI fails to move convincingly above the 60 mark and the price stays below the key resistance.
Therefore, investors are advised to avoid fresh long positions in Bank of India at current levels. A stronger price structure, supported by improved RSI momentum and a clear breakout above Rs 141, would be essential before considering a bullish perspective.
Disclaimer: This article provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.