BEL- Breakout- Strong Chart- ++ Results
Updated
Script: BEL
Nifty50 Stock: NO
Sector: Defence & Aerospace
Results: Published on 16th July. Very Positive Result. Q1 EBITDA RUPEES 5.22B VS 700M (YOY). Q1 CONS NET Profit Rupees 3.65B vs 243M (YOY)
BEL seems to be breaking out a triangle pattern, although it'll face resistance at 247.50 - 250 (fib level + MAX call writing as per OI), sustaining above this could take it to 260 (ATH) easily and much higher.
If you notice the FIB levels, it's re-traced back up to 216.95 and bounced. Now taking support at each FIB level. BEL has major support at 230-225 - demand zone.
BEL is a strong script fundamentally and also on a chart. It's result came positive published on 16th July 2022.
BEL consolidated between 200-220 for a few months before breaking out the range and had rally all the way up to 260 in APR 2022.
Buying (1st entry) should be above 248-250 if it sustains these levels or breaks out with volume from here. FYI - Max call writing at 250. They (call writers) at 250 may have to cover their positions in next couple of days. Once it hits 259-260 (ATH), profit booking may happen and it may re-test 247-250 before further rally. Further buying (2nd entry) should be only after breaking 260 after re-testing else rejection could be heavy from higher levels. If you see no re-test/ retracement and there is a parabolic move then it's wise to avoid entry otherwise you may get trapped.
CAUTION - TIP of the DAY : Better to wait for an entry when you see price reaching at resistance. This is the level when Bears get active and try their best to defend their positions. Weak hands will run away and book their profit/loss first. If bears find a little weakness from bulls then they may get aggressive and we can see heavy rejection. So either wait till it breaks resistance with volume or retrace first and then try to break the levels.
BEL has posted very good results though which will be in favour of bulls. So breakout should trigger short covering above 250 and hit higher levels ie 260, 270, 280 & 293 in very near future. Keep an eye on breakout.
*** For F&O - Always hedge your position or keep SL in the system *** Play Safe! Protect your Capital! ***
Nifty50 Stock: NO
Sector: Defence & Aerospace
Results: Published on 16th July. Very Positive Result. Q1 EBITDA RUPEES 5.22B VS 700M (YOY). Q1 CONS NET Profit Rupees 3.65B vs 243M (YOY)
BEL seems to be breaking out a triangle pattern, although it'll face resistance at 247.50 - 250 (fib level + MAX call writing as per OI), sustaining above this could take it to 260 (ATH) easily and much higher.
If you notice the FIB levels, it's re-traced back up to 216.95 and bounced. Now taking support at each FIB level. BEL has major support at 230-225 - demand zone.
BEL is a strong script fundamentally and also on a chart. It's result came positive published on 16th July 2022.
BEL consolidated between 200-220 for a few months before breaking out the range and had rally all the way up to 260 in APR 2022.
Buying (1st entry) should be above 248-250 if it sustains these levels or breaks out with volume from here. FYI - Max call writing at 250. They (call writers) at 250 may have to cover their positions in next couple of days. Once it hits 259-260 (ATH), profit booking may happen and it may re-test 247-250 before further rally. Further buying (2nd entry) should be only after breaking 260 after re-testing else rejection could be heavy from higher levels. If you see no re-test/ retracement and there is a parabolic move then it's wise to avoid entry otherwise you may get trapped.
CAUTION - TIP of the DAY : Better to wait for an entry when you see price reaching at resistance. This is the level when Bears get active and try their best to defend their positions. Weak hands will run away and book their profit/loss first. If bears find a little weakness from bulls then they may get aggressive and we can see heavy rejection. So either wait till it breaks resistance with volume or retrace first and then try to break the levels.
BEL has posted very good results though which will be in favour of bulls. So breakout should trigger short covering above 250 and hit higher levels ie 260, 270, 280 & 293 in very near future. Keep an eye on breakout.
*** For F&O - Always hedge your position or keep SL in the system *** Play Safe! Protect your Capital! ***
Note
As mentioned, call writers at 250 had to cover their positions which brought short covering rally. Then it took rejection from 260 (ATH), was rejected from this level previously back in Apr 2022. Hope no one (whoever read this idea) got caught at higher levels and waited as below for 2nd entry,
"Further buying (2nd entry) should be only after breaking 260 after re-testing else rejection could be heavy from higher levels. If you see no re-test/ retracement and there is a parabolic move then it's wise to avoid entry otherwise you may get trapped"
Note
What a jump after breakout! I'm glad that this idea worked perfectly well! 260 is a major support now. 270 is still a resistance but may get taken out soon as there are some call writers who're stuck at 260 & 265 and need covering their positions which could bring one more up move. Some profit booking possible at 270 though! Be Aware!
BEL is at a new ATH now!
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