BHEL

BHEL

BHEL is moving in a descending triangular pattern for almost a year with strong support at 195 to 197 levels. Stock is in down trend for almost 2 years. If these levels breach then stock may see more lower levels. However the stock is trading at lower valuations and policy reforms may drive the stock to break out of this triangle as well.

Short Term:

Stock is at good valuations and also at support of the descending triangle. Having weight-age in Indices, stock may not breach these levels unless Indices themselves are ready to visit lower levels. Go long on the stock at 190+ levels with Strict SL at 190 for targets of 230 levels.

Long Term:

Stock looks good at prices at lower valuations and also at support of the descending triangle. Go long on the stock at 190+ levels with Strict SL at 190 for targets of 230/273/327 levels.These targets are achievable only if the stock breaks out of the descending triangle patterns. Traders/Investors can get into the stock with SL @ 190 and can trail their SL at 225 levels to see whether stock gives break out of the triangle pattern. 

Considering the reforms on fuel issues stock may break out of this range and move towards its previous levels of highs. 

Note: Do remember that the stock is in down trend for long time and these type of symmetrical patterns break below as well.Considering the risk reward ratio, one can take this risk to see good profits.