23 December 2014

Bharat Electronics (BHAELE): Breakout past multi-year highs… ::ICICI Securities, link

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• The regime change in the general elections accompanied by a strong
mandate infused a fresh lese of life into PSU defence equipment provider
BEL. The stock staged a ‘V’ shaped recovery to vault past its 2007 and
2010 highs of | 2250 in November 2014. The entire rally in 2014 displays
characteristics of an impulsive behaviour as the stock completely
overhauled its preceding decline of 46 months (April 2010 to February
2014) in a record five months. Such a faster retracement has larger
implication on the long term price structure and heralds a strong uptrend
for the stock, going forward
• The behaviour of volumes is testament to the changing dynamics of the
long term price trend in the stock. The entire rally since the start of 2014
has garnered record high participation as monthly volumes since
February 2014 (28.5 lakh shares) have been almost three times the 24
month average volume of 10 lakh shares
• We expect the stock to ride the new found momentum into 2015 as well
and remain on course towards target of | 3650. The measuring
implication of the multi-year range breakout, i.e. the magnitude of 2010-
14 decline (| 2251 to | 893) projected from the breakout point of | 2251
opens upsides towards | 3650 levels on a larger time frame. This also
coincides with the 138.2% extension of the February-July rally (| 893 to
| 2318) measured from the August 2014 low of | 1701 projecting upside
towards the | 3650 region
*Call has been initiated in i-Click to Gain on December 18, 2014 at 09:36 hrs

LINK
http://content.icicidirect.com/mailimages/IDirect_TechnicalOutlook_2015.pdf

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