BEML @ Make or Break pointBEML CMP: 3791.20; RSI: 40.01;
BEML has near completion of ABC correction wave (Shown Elongated Flat with Irregular Failure pattern). Basis above chart reading, now BEML has entered time correction zone and may consolidate in band of 4280-3430 , which may last till Jan 2025.
If the consolidation band is broken upwards ( 3 day closing above 4280 level) , which may take the script in price expansion mode and new wave formation will take the script to 4604-5052 & finally to 6234 levels.
Breakdown below the lower band of consolidation zone and close below 3430, will invalidate the ABC pattern counting and script may slip to 3157 and if this level is broken eventually will find support at 2710 levels.
Scenario 1: Breakout above 4280
Buy above: 4280
Stop Loss: 3881
Target: 4604-5052-6234
Scenario 2: Breakout below 3430
Short: 3312
Stop Loss: 3430
Target: 3157 -2710
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BEML
BEML can give some brave upward moves in the coming time.BEML Ltd. is the leading manufacturer of heavy earth moving equipment in Asia and an Indian Public Sector Company under the Ministry of Defence, Govt. of India. It is a Mini Ratna Public Sector Enterprise, operating in three distinct business verticals namely Mining & Construction, Defence & Aerospace and Rail & Metro. BEML Ltd. CMP is 3091.05.
The Negative aspects of the company are High Valuation (P.E. = 70.5), The company's Positive aspects are No debt, Zero promoter pledge, FIIs are increasing stake, MFs are increasing stake, Improving annual net profit and Improving cash from operations annual.
Entry can be taken after closing above 3104. Targets in the stock will be 3249, 3375 and 3505. The long-term target in the stock will be 3725 and 3868. Stop loss in the stock should be maintained at Closing below 2684.
The above information is provided for educational purpose, analysis and paper trading only. Please don't treat this as a buy or sell recommendation for the stock. We do not guarantee any success in highly volatile market or otherwise. Stock market investment is subject to market risks which include global and regional risks. We will not be responsible for any Profit or loss that may occur due to any financial decision taken based on any data provided in this message.
BEML LTD, nested 12-12BEML Ltd manufactures a wide range of heavy earthmoving equipment catering to the mining and construction industry, vehicles for defense forces and coaches for the metro and Indian Railways.
This is not a buy sell recommendation please ask your fin. advisor for more information before going for a trade.
BEMLNSE:BEML
One Can Enter Now ! Or Wait for Retest of the Trendline (BO) Or wait For better R:R ratio
Note :
1.One Can Go long with a Strict SL below the Trendline or Swing Low of Daily Candle.
2. Close, should be good and Clean.
3. R:R ratio should be 1 :2 minimum
4. Plan as per your RISK appetite
Disclaimer : You are responsible for your Profits and loss, Shared for Educational purpose
BEML looking more and more interesting.BEML is a Public sector undertaking company manufacturing Defense, Farming, Mining, Railway Vehicles and many similar heavy machinery items. As PM and Defense Minister has called for Self Reliance in Defense most defense themed companies are doing well and are having plum orders. The valuation of the stock is very high as the company trades at a PE of 50.5. However MFs and FIIs have increased their stake in the counter off late. Entry can be taken in the counter after we get a closing over 1880. The targets will be 1963 and 2084. The stop loss should be maintained at closing below 1725 for trading otherwise it is a long term investment idea.