Bharat Heavy Electricals Limited (BHEL) Stock - Complete Technical Analysis - Sep 03, 2024

BHEL Stock Technical Analysis: Bearish Signals

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investing in stocks involves risks, and it's essential to conduct thorough research or consult with a financial advisor before making investment decisions.

Bharat Heavy Electricals Limited (BHEL) is currently trading at 286. The stock's P/E ratio stands at a high 993, indicating that it may be overvalued relative to its earnings. The book value per share is 70.2, which provides a benchmark for the stock's intrinsic value.

Technical Analysis: The stock's Relative Strength Index (RSI) is at 38.79, suggesting it is in the oversold territory, which could imply a potential rebound if buying interest picks up. The Stochastic %K and Stochastic RSI are both very low, indicating strong bearish momentum. The MACD is negative, signaling bearish conditions, while the Momentum indicator is also in the negative zone, confirming the current downtrend.

The Average Directional Index (ADX) is at 19.44, indicating a weak trend. This is corroborated by the Commodity Channel Index (CCI) and the Williams Percent Range, both reflecting a strong bearish phase. The Awesome Oscillator and Bull Bear Power further support the bearish sentiment.

Moving Averages: The stock's short-term moving averages (10-day and 20-day) are below the long-term averages (50-day, 100-day, and 200-day), suggesting a bearish trend. The Exponential Moving Averages (EMAs) and Simple Moving Averages (SMAs) are also indicating a downward trend, as the price is below these averages.

Pivot Points: The stock is currently trading below the Classic Pivot Point of 298.5, suggesting further downside potential. The Camarilla and Fibonacci pivots also indicate key resistance levels above the current price, while the support levels are slightly below, around 277.05, 263.55, and 228.6.

Volatility: The Average True Range (ATR) is around 14.63, indicating moderate volatility, which traders should consider when planning their trades.

In summary, BHEL is showing bearish signals across various indicators, with support levels around 277 and resistance around 298. Traders should monitor these levels closely and be cautious of potential volatility.