Over the past two sessions, shares of Bharat Heavy Electricals Ltd (BHEL) have been rising. Thursday saw an extension of the BHEL share price boom, reaching an intraday high of ₹292.35 a share on the NSE and recording a roughly 19% increase in just two days.
Stock market analysts claim that because of the market excitement surrounding project orders in Uttar Pradesh, BHEL shares are seeing significant upward movement today. The PSU stock has seen a surge in demand due to this. They stated that the stock has recovered from what is referred to as the “oversold zone,” a technical phrase meaning that the price of a company has dropped too much and is probably going to rise again. They forecast that in the near future, it might reach ₹315 to ₹320.
Causes of the BHEL stock price increase
When questioned about the cause of the BHEL share price increase, Profitmart Securities Head of Research Avinash Gorakshkar responded, “BHEL shares are rising on the market buzz about the company receiving fresh orders in Uttar Pradesh.” According to the report, the company has been awarded two 800 MW project orders in Uttar Pradesh, which has led to an increase in interest in purchasing BHEL shares.” Though the firm hasn’t made any formal declaration in this respect, Gorakshkar issued a warning, saying that the news is entirely hypothetical and that there may be dangers or difficulties that could have an impact on the performance of BHEL stock.
Target price for BHEL shares
Anticipating more gains in BHEL’s stock, Senior Manager—Technical Research at Anand Rathi Ganesh Dongre stated: “The BHEL share price recovered from the oversold area, and the current rally might take the stock as high as ₹315 to ₹320. Therefore, it is recommended that BHEL stockholders retain the scrip with a stop loss of ₹265. Long-term investors can continue to use a buy-on-dips approach with a stop loss of ₹240 per share.”
Ganesh Dongre made the following recommendation to new investors on BHEL shares: “New investors can purchase BHEL shares at current prices, keeping a stop loss at ₹240. It is recommended that they continue buying on dips till the price rises above ₹240. New investors ought to keep their stop loss at ₹240 per share.
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