BHEL shares up 10% as rally continues for 5 sessions in a row – investors must hold for these targets

Bharat Heavy Electricals Limited (BHEL) shares continued their strong rally, gaining over 10 per cent on the NSE on Wednesday. The shares have been on an upward swing over the last 5-6 trading sessions. The shares were trading at Rs 77.20, up almost 10 per cent around 2:50 pm.

The stock hits 52-week high of Rs 80.35 on the intraday basis. The intraday low for this stock was 71.50.

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Technical analyst Nilesh Jain said that BHEL shares have been on an upward swing and are currently witnessing a cup and handle pattern on the technical charts.

Jain, who is Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking said that the stock has seen a rounding formation breakout that has helped it in its strong rally.

He recommends a hold on this stock for the existing investors for a target price of Rs 82 in the short term which he sees an immediate resistance for the stock. If this level is breached decisively, it will be placed well to achieve levels of Rs 95-100, the AVP said.

He recommends buying only on correction as the stock has moved considerably over the last 2-3 sessions. The right levels to enter the stock is around Rs 71-Rs72, he further said.

The risk-to-reward ratio is not favourable at the current levels, he added. He puts a stop loss at Rs 65.