Buy BHEL, UltraTech Cement shares; book profits in Eternal stock, suggest Anand Rathi

Indian benchmark indices kicked off the week on a positive note and settled sharply higher amid the announcement of GST rationalisation and upgrade by S&P Global after 18 years. However, geopolitical concerns added to some caution. BSE Sensex surged 676.09 points, or 0.84 per cent, to settle at 81,273.75, while NSE's Nifty50 gained 245.65 points, or 1.00 per cent, to close at 24,876.95 for the day.
 

Select buzzing stocks including Bharat Heavy Electricals (BHEL), UltraTech Cement and Eternal including are likely to remain under the spotlight of traders for the session today. Here is what  Jigar S Patel, Technical Research Analyst at Anand Rathi Shares & Stock Brokers has to say about these stocks ahead of Tuesday's trading session:
 

UltraTech Cement | Buy | Target Price: Rs 13,200 | Stop Loss: Rs 12,450

UltraTech Cement has recently displayed a classic cup and handle formation, which is considered one of the strongest continuation patterns in technical analysis. This setup usually indicates that after a phase of consolidation, the stock is preparing for a fresh uptrend. The breakout is further validated by a noticeable surge in volumes, suggesting active participation from buyers. The RSI has reversed from the key 50 level, highlighting a shift towards bullish momentum. Traders are advised to initiate long positions only on a daily closing above Rs 12,700, which will confirm the breakout. Once this level is sustained, the stock is likely to move towards Rs 13,200 in the short term. On the downside, risk should be managed with a strict stop-loss at Rs 12,450 on a daily close basis. This setup offers a favourable risk-reward opportunity for short- to medium-term traders.
 

Eternal | Book Profits

Eternal has witnessed a sharp rally of nearly 66 per cent from its recent bottom of Rs 195, and is currently trading above the Rs 320 mark. While the uptrend has been strong, the stock now looks overextended at higher levels, raising concerns of a near-term pullback. Adding to this caution, the latest daily candle resembles a shooting star pattern, which is a well-known bearish reversal signal, often seen at market tops. This suggests that upward momentum could be losing steam, and the risk of profit booking or corrective decline is increasing. In light of these technical indications, we advise traders and investors to lock in profits at current levels and avoid initiating fresh buying until a healthy correction or consolidation provides a better entry opportunity.
 

Bharat Heavy Electricals | Buy | Target Price: Rs 240 | Stop Loss: Rs 205

BHEL appears oversold and is trading close to a crucial support zone at the current juncture. The stock has strong support in the Rs 213–215 range, which also coincides with the 61.8 per cent Fibonacci retracement level, adding further strength to this zone. This confluence of technical factors suggests that the downside may be limited and a potential rebound could be on the cards. Considering this setup, we advise traders and investors to accumulate the stock in the 215–213 range. On the upside, the immediate target is seen around Rs 240, offering a favourable risk-reward opportunity. To manage risk effectively, a stop-loss should be placed below Rs 205 on a daily closing basis. A sustained move above support levels may attract renewed buying interest in the stock.