After HAL and BEL, now Bharat Dynamics eyes record high. Here's why

Bharat Dynamics has more-than-doubled in 2022 so far, however, the stock still trades 14 per cent shy from its historic peak.

Shares of aerospace and defence company, Hindustan Aeronautics hit a new all-time high on Thursday, while Bharat Electronics, manufacturer of ammunitions and missile systems too registered a new all-time high. Likewise, Bharat Dynamics too witnessed a robust rally, gaining over 6 per cent in today's intra-day session.

Hindustan Aeronautics was in focuys after the company signed a $100 million contract with US engine-maker Honeywell, for 88 engines to power the indigenous Hindustan Turbo Trainer – 40 (HTT-40), on which the Indian Army, Navy and Indian Air Force (IAF) pilots will first learn to fly. READ MORE

The stock has surged over 14 per cent so far in July and vaulted 65 per cent on YTD (year to date)  basis.  Bharat Electronics has gained 16 per cent in the current month and has rallied 30 per cent so far this calendar year. Bharat Dynamics has more than doubled in 2022, however, trades 14 per cent lower from its historic peak. 

To understand the future course of these defense stocks, especially of Bharat Dynamics, whose performace is not in-line with peers. Lets consider the technical outlook:-

Hindustan Aeronautics Ltd (HAL)

Likely target:  Rs 2,500 to Rs 2,400

Upside potential: 20% 

The bullish breakout of the “Rising channel pattern” shall help the stock continue to see higher levels, as per the weekly chart. Now onwards, unless the stock breaks Rs 1,700 level, every corrective dip would see the addition of longs. The trend is headed towards Rs 2,400 to Rs 2,500 range. On an immediate perspective, a closing basis support for the stock exists at Rs 1,900-mark. CLICK HERE FOR THE CHART

Bharat Electronics Ltd (BEL)

Likely target: Rs 320

Upside potential:  17%

Since January 2021, the stock price of Bharat Electronics has seen a gradual upside denoting “Higher High, Higher Low”, formation, on the weekly chart. The stock seems to have a firm support at Rs 210 for the medium-term uptrend. The bullish bias seems headed towards Rs 320 level. Immediate support for the stock exists at Rs 260, which needs to be adhered on a closing basis. CLICK HERE FOR THE CHART

Bharat Dynamics Ltd (BDL)  

Likely target: Rs 905

Upside potential:  16%

Lately, when the benchmark indices, the BSE Sensex and Nifty 50 were hitting fresh 52-week lows breaching crucial moving averages, the shares of Bharat Dynamics held ground over the 100-day moving average (DMA). That strength has now grown multifold and the stock has conquered Rs 742, its 50-DMA obstacle. Thus, until Rs 690 its 100-DMA is not violated the stock is likely to scale higher peaks, and can even cross the all-time high of Rs 904.90. A minor barrier for the stock is seen at Rs 850 level. CLICK HERE FOR THE CHART