Bharat Forge shares dive 6% today; can the stock retest one-year high level?

Shares of Bharat Forge Ltd slumped 5.61 per cent in Tuesday's trade to hit a day low of Rs 1,015.60. At this price, the stock has slipped 11.53 per cent from its one-year high price of Rs 1,147.95, a level seen on September 18, 2023. Despite the mentioned fall, the scrip was up 36.51 per cent from its 52-week low of Rs 744, hit on April 10 this year.

On the earnings front, the company posted a 29 per cent year-on-year (YoY) rise in its standalone net profit at Rs 345.9 crore for the second quarter of financial year 2023-24 (Q2 FY24). The company had recorded a net profit of Rs 268.1 crore in the corresponding quarter of last fiscal year.

The automotive forging company reported a standalone revenue of Rs 2,249.4 crore in Q2 FY24, registering a growth of 20.7 per cent from Rs 1,863.9 crore in the year-ago quarter. During the quarter, the company said its defence vertical, KSSL, secured new business worth Rs 1,100 crore, taking the executable order book to Rs 3,000 crore.

A few technical analysts suggested that the stock may hit Rs 1,150 in the near term. However, one analyst also pointed out that Rs 1,100 could act as strong resistance. Support on the counter is likely around Rs 1,000 level.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Bharat Forge is currently witnessing a price-wise correction post the recent stellar rally between Rs 750 and Rs 1,145. It is hovering near the cluster of its short-term moving averages. The stock has a strong support of 100-EMA (Exponential Moving Average), coinciding with the Rs 1,000 psychological mark. While on the higher end, the bearish gap around Rs 1,100 is likely to act as a sturdy hurdle in the comparable period, surpassing which the counter is expected to trigger momentum."

Ganesh Dongre, Senior Manager - Technical Research Analyst, Anand Rathi Shares and Stock Brokers, said, "On daily charts, the stock has formed a fresh bottom at Rs 1,000–1,020. It has formed a morning doji star pattern at the said level, which is bullish in nature. Traders can buy on dip and hold this stock for target prices of Rs 1,130-1,150 with a stop loss of Rs 1,010."

DRS Finvest founder Ravi Singh said, "The share price is witnessing lower-level buying, indicating a bullish trend. The technical parameters are suggesting an up move in near future. The short-term MAs are in support of the current trend and the counter may reach the levels of Rs 1,150 in coming weeks."

AR Ramachandran from Tips2trades said, "Bharat Forge is bullish on daily charts with strong support at Rs 1,032. A daily close above resistance of Rs 1,073 could lead to a rise till Rs 1,140 in the near term."

(Disclaimer: Business Today 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.)

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