Budget 2024 stock to buy: Sumeet Bagadia picks BEL, shares short-term target price

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Bharat Electronics Ltd (BEL) is Sumeet Bagadia's top Budget 2024 stock bet. The Executive Director at Choice Broking noted that the defence stock has recently reversed from its 50-day exponential EMA with significant volume, suggesting a potential reversal and a robust bullish trend. 

BEL shares are down 6.5 per cent in past five sessions but are still up 68.41 per cent in 2024 so far and 147 per cent in the last one year. On Monday, it quoted at Rs 311.65, up 1.75 per cent. 

Bagadia said a breakout above Rs 315 could drive the stock towards the Rs 340 and Rs 380 levels, with immediate resistance at Rs 329. On the downside., levels of Rs 300 and Rs 290 stand as critical support levels, he said.

"Following a prolonged correction. the stock has reversed from the support level. The Relative Strength Index (RSI) is currently at 50.8 indicating an upward trajectory and growing buying momentum. Taken together, these technical indicators suggest that BEL has the potential to reach the Rs 340-Rs 360 targets in the near term," he said.

Bagadia said a prudent strategy would involve considering buying opportunities on dips at around Rs 300 level. 

"In summary, based on technical analysis and prevailing market conditions, BEL appears to offer a promising buying opportunity for those targeting a Rs 340 & Rs 360 price objectives. It is essential to implement prudent risk management strategies to navigate potential market fluctuations," he said.