BEL : High-Quality Setup Despite Market Weakness📊 Technical Catalysts :
This is a perfect VCP structure with a clean breakout supported by strong volume, clearly indicating institutional interest. The stop loss is well placed below the basing formation, keeping risk structurally defined. The 20 EMA crossing above the 50 EMA further confirms a bullish trend shift.
EPS and Sales are continuously increasing for the past few quarter. The only dip was in June and this is not a stock specific event but a market wide scenario.
🏭 Fundamental Catalysts :
Good Results ; EPS and Sales are continuously increasing for the past few quarter. The only dip was in June and this is not a stock specific event but a market wide scenario.
Q3 Beat: Net profit grew 20.4% YoY (₹1,590 Cr), comfortably beating street estimates. Revenue execution is at an all-time high.
The EU FTA Factor: The "Mother of All Deals" signed on Jan 27 opens up a $750B market for Indian defense electronics. BEL is the primary beneficiary as it scales up exports to European nations looking to de-risk from China/Russia.
Budget 2026 Speculation: With the Union Budget on Feb 1, the market is front-running a likely increase in defense capital outlay.
Even though the broader market is showing signs of weakness, the confluence of strong technical structure, volume-backed breakout, moving-average crossover, and improving fundamentals provides enough confidence to take this trade, while still maintaining disciplined risk management with a standard 1% risk per trade.
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If my perspective changes or if I gather additional fundamental data that influences my views, I will provide updates accordingly.
Thank you for following along with this journey, and I remain committed to sharing insights and updates as my trading strategy evolves. As always, please feel free to reach out with any questions or comments.
Other posts related to this particular position and scrip, if any, will be attached underneath. Do check those out too.
Disclaimer : The analysis shared here is for informational purposes only and should not be considered as financial advice. Trading in all markets carries inherent risks, and past performance is not indicative of future results. It’s essential to conduct your own research and assess your risk tolerance before making any investment decisions. The views expressed in this analysis are solely mine. It’s important to note that I am not a SEBI registered analyst, so the analysis provided does not constitute formal investment advice under SEBI regulations.
