BEL Stock May Test ₹420–₹425 In The Short Term, Says SEBI Analyst Deepak Pal

Bharat Electronics (BEL) shares have rallied over 50% in the last six months as the defense sector gained traction among investors. Its technical charts are showing signs of recovery as the stock traded near crucial resistance levels. 

SEBI-registered analyst Deepak Pal flagged a breakout potential in BEL and sees a potential rally to ₹500 in the next 1–2 years.

Technical Outlook

On the daily chart, BEL shares are trading around ₹388–₹390, flanked by key indicators. Its 20-day Exponential Moving Average (EMA) acts as an immediate resistance. 

In other indicators, the Moving Average Convergence Divergence (MACD) is negative, with the histogram shrinking, hinting at weakening bearish momentum. And the Relative Strength Index (RSI) stands at 47, allowing room for either move. Parabolic SAR dots are above price, suggesting short-term downward pressure, but a weekly close above ₹400 could spark recovery, Pal added.

Fundamental & Order Book Strength

The defense PSU has a strong order book, winning multiple orders since April. These include an ₹1,640 crore order for “Atulva” Air Defence Fire Control Radars. These deep and diverse orders indicate steady future revenue streams and strong ministry trust, according to him. 

The Defence Acquisition Council’s (DAC) approval of ₹67,000 crore in indigenous defence projects has further boosted BEL’s sentiment. Pal also noted that the company’s deal with Tata Electronics to advance indigenous semiconductor/electronics solutions, as well as ongoing projects like “Akashteer” (air-defence system), Project Kusha (indigenous long-range SAM), and QRSAM, place the company at the forefront of future defence tech. 

What Should Investors Do?

For near-term traders, he advised monitoring commentary from Prime Minister Narendra Modi during the Independence Day speech for any announcements. If BEL continues its current rally, he expects the stock to test levels of ₹420–₹425 in the short term. 

For medium-to-long-term investors, traders can look to buy on any dips. The stock is likely to break its all-time high and test levels of ₹480–₹500 on the upside over the next 1-2 years.

What Is The Retail Mood?

Data on Stocktwits shows that retail sentiment has been ‘bearish ‘ on this counter this week.

BEL shares have risen 31% year-to-date (YTD). 

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