In the previous session, the Nifty Index saw a deeply negative opening in the morning session and extended losses as the day progressed. The Index formed a Doji candle on the chart and closed with a net loss of 171 points. Technically, The Nifty index closed below the Middle Band Bollinger on the chart which indicates more weakness. Hence a highly cautious approach is advisable for the next trading day.

Look at the below research report of ‘Stocks to Buy for – Tuesday, July 20, 2021’ before the market opens.

Bharat Electronics Ltd

NSE :BEL   BSE :500049  Sector : Consumer Durables

In the last trading session, BEL stock made a new 52 week high near 187.75 levels. In the daily time frame, stock has given a breakout above ‘Bullish Flag Pattern’. It’s a continuation pattern which looks similar to flag and flag pole. It occurs when the prices enter into consolidation phase after a sharp rise movement. On the above chart we can see a V pattern rise in the stock since June 2021 which formed a Flag pole. After that stock consolidated into a rectangular range between 188-177 levels and formed a formation called Flag.

In addition, Stock is comfortably closed above the 20 days Exponential moving average which will act as a key support for the stock. Also, the up move has been supported by the ADX indicator as +DI is moving above -Di on the daily chart whereas ADX is placed near 52.

In short, BEL looks to be positive now. Break above previous day’s high near 187.75 levels will confirm the trend and could take prices towards 192 and 211 levels. On downside stop loss can be placed below 177 levels. To avoid risk, it is best to book partial profits near 192 levels and then trail stop to cost.

Check More Analysis on BEL at: Bharat Electronics Ltd