BHEL Gains On Clean Mobility Foray But Charts Suggest Weak Technicals

Shares of Bharat Heavy Electricals (BHEL) rose 3% on Monday, after it signed an agreement with Singapore-based Horizon Fuel Cell Technologies to develop hydrogen fuel cell-based rolling stock.

The stock pared some of the gains to close 1.93% higher.

BHEL signed an exclusive memorandum of understanding (MoU) with Horizon Fuel for a period of 10 years. The partnership will focus on business sharing and joint operations and mark BHEL’s entry into the hydrogen fuel cell sector.

Technical Analysis

BHEL is currently trading in the ₹215 - ₹218 range, consolidating after a sharp correction from its recent highs above ₹300. The stock remains under a bearish structure, with prices trading below all key moving averages, including the 20-day, 50-day, 100-day, and 200-day averages, according to SEBI-registered analyst Varunkumar Patel.

The 200-DMA around ₹230 - ₹235 is acting as a strong resistance zone, while ₹210 serves as crucial near-term support.

Momentum indicators also reflect weakness with the relative strength index (RSI) near 44, indicating subdued sentiment but not yet oversold. The Moving Average Convergence/Divergence (MACD) remains in negative territory, below the signal line, suggesting bearish momentum, Patel noted.

A decisive breakout above ₹270 on strong volumes could lead to a retest of the ₹300 levels, while a breakdown below ₹210 could invite further downside, he added.

Diversification of Energy Solutions

The 10-year exclusive MoU with Horizon Fuel Cell Technologies marks BHEL’s entry into a new clean mobility segment, directly aligned with India’s Net Zero ambitions. Hydrogen fuel cells are seen as a transformative technology in green transport, with zero emissions and high efficiency, Patel said.

BHEL had recently secured a ₹2,600 crore Letter of Intent (LoI) for an 800 MW thermal project, underlining its strength across both conventional power and emerging clean energy solutions, the analyst added.

Stock Watch

Despite the intra-day gains, BHEL’s stock is still around 25% below its 52-week high and remains down 6% year-to-date. It has shed 18% in the past year.

However, the streets cheered the new deal with retail sentiment turning ‘bullish’ from ‘neutral’ in the previous session.

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