BHEL Share Price Declines 4.5 Percent; Major Support at Rs 200
BHEL shares witnessed selling pressure in today's session and the stock closed 4.5 percent lower. On technical charts, the stock is looking bearish and could see further decline in the coming sessions. Over last six months, BHEL has declined by 33 percent. The stock closed today at Rs 219.7
Bharat Heavy Electricals Limited (BHEL), a government-owned engineering and manufacturing enterprise, is currently trading at Rs 231.50, well below its 52-week high of Rs 335.35. With a market capitalization of Rs 76,570 crore and a staggering P/E ratio of 327.91, the stock raises questions about valuation while remaining attractive due to its leadership in power and industrial equipment manufacturing. This article delves into BHEL’s technical analysis, market performance, and competitive positioning, offering actionable insights for both short-term traders and long-term investors.
Stock Overview
| Metric | Value |
|---|---|
| Open (Rs) | 231.50 |
| High (Rs) | 231.50 |
| Low (Rs) | 219.19 |
| Market Cap (Rs Cr) | 76.57KCr |
| P/E Ratio | 327.91 |
| Dividend Yield (%) | 0.11% |
| 52-Week High (Rs) | 335.35 |
| 52-Week Low (Rs) | 191.85 |
Recent Analyst Recommendations
Brokerage Insights
HDFC Securities: Recommends a “Hold” rating with a target price of Rs 240, citing strong order inflows but concerns over stretched valuations.
ICICI Direct: Maintains a “Neutral” rating with a target price of Rs 245, noting that BHEL’s recovery depends on sustained improvements in execution.
Motilal Oswal: Suggests a “Sell” call with a target price of Rs 215, citing margin pressures and high competition in the power equipment sector.
Technical Analysis: Candlestick Patterns
Candlestick Observations
The daily chart shows a "Hammer" candlestick, indicating potential buying interest near the Rs 220 level.
The prior downtrend lends credibility to this bullish reversal signal.
Actionable Insight
If the stock sustains above Rs 231, it may rally toward Rs 245 in the near term. A drop below Rs 220 could signal further downside.
Technical Analysis: Fibonacci Levels
Using the 52-week high of Rs 335.35 and 52-week low of Rs 191.85, Fibonacci retracement levels are calculated as follows:
| Fibonacci Level | Price (Rs) |
|---|---|
| 0% (52-week low) | Rs 191.85 |
| 23.6% Retracement | Rs 231.44 |
| 38.2% Retracement | Rs 255.49 |
| 50.0% Retracement | Rs 263.60 |
| 61.8% Retracement | Rs 271.71 |
| 100% (52-week high) | Rs 335.35 |
Actionable Insight
A breakout above Rs 231.44 (23.6%) could target Rs 255.49 (38.2%), while failure to hold above Rs 220 may lead to a retest of lower support levels.
Technical Analysis: Support and Resistance Levels
Support Levels
Rs 220: Immediate support based on recent lows.
Rs 200: Stronger support at a psychological level.
Resistance Levels
Rs 240: Near-term resistance to watch.
Rs 260: Medium-term resistance and a critical Fibonacci level.
Actionable Insight
Traders could consider entering near Rs 230 with targets at Rs 240 and Rs 260, maintaining a stop-loss at Rs 220.
