Indian equity benchmark indices experienced a significant downturn on Thursday, influenced by rising crude oil prices, elevated bond yields, a weakening rupee, and persistent selling by Foreign Institutional Investors (FIIs). Interest rate hikes and a hawkish monetary tone further dampened investor sentiment, leading the BSE Sensex to crash over 1,000 points and the Nifty50 to plummet more than 370 points.
Despite the broader market weakness, select stocks are expected to remain in focus for traders. Vishnu Kant Upadhyay, AVP of Research at Master Capital Services, has provided technical analysis and trading recommendations for Bharat Heavy Electricals Ltd (BHEL), Divis Laboratories Ltd, and BSE Ltd for today's trading session.
BSE Ltd: Bullish Reversal Potential
BSE Ltd has shown indications of a potential bullish trend reversal. The stock recently broke above a declining trendline, surpassing the ₹3,300 mark, which signals improving price momentum. After a sustained downtrend, BSE found strong support around the ₹3,050 horizontal zone and experienced a sharp rebound, indicating renewed buying interest at lower levels.
- Recommendation: Buy
- Target Price: ₹3,650-3,800
- Stop Loss: ₹3,050
The recovery has allowed the price to reclaim its key moving averages, strengthening its near-term technical setup. The chart structure has turned positive, forming a higher high, which suggests improving trend dynamics. Sustained trading above ₹3,050 is crucial for maintaining the reversal structure and supporting further upside. The overall setup favors a 'buy on dip' strategy.
Bharat Heavy Electricals (BHEL): Sustained Upward Momentum
BHEL continues to exhibit a strong bullish structure, having recently registered a fresh all-time high above ₹445. This confirms sustained upward momentum for the stock. The breakout followed a period of healthy consolidation around its 21 and 55 Exponential Moving Averages (EMAs), indicating strong accumulation while preserving the broader uptrend.
- Recommendation: Buy
- Target Price: ₹465-475
- Stop Loss: ₹400
Following the breakout, BHEL has retraced towards its breakout zone, creating a favorable 'buy on dip' opportunity. The price remains above its key moving averages, and the formation of higher highs and higher lows reinforces the positive chart structure. Sustained price action above ₹445 could support further upside and a continuation of the prevailing medium-term bullish trend.
Divis Laboratories: Robust Bullish Setup
Divis Labs maintains a robust bullish setup, consolidating near its 21 EMA after a strong upward move. This consolidation is seen as constructive, allowing the price to absorb recent gains while retaining its underlying strength. The stock continues to form a sequence of higher highs and higher lows, confirming the prevailing upward trend.
- Recommendation: Buy
- Target Price: ₹10,000-10,200
- Stop Loss: ₹8,900
Sustained trading above the 21 EMA further reflects healthy buying interest and trend resilience. The ₹9,300-9,350 zone is identified as an important near-term support area, while a decisive move above ₹9,600 could trigger the next leg of the uptrend.
Disclaimer: This article provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.