While the stock was making new lows in the entire fall of 2018, the indicators held on to their previous supports
MUMBAI: The stock of BEML is on the verge of an uptrend if one were to go by the parabolic SAR indicator, which has seen a breakout on the monthly chart.
This is of great significance, as this could be an upward breakout for the stock after a downtrend that has lasted 15 months. Used to calculate price direction of an asset, the parabolic SAR indicates when the price direction is about to change.
Volume patterns have improved in the recent last 3-4 months and the texture of volume patterns favours a buying trend. While the stock was making new lows in the entire fall of 2018, the indicators held on to their previous supports, thereby indicating a strong bullish divergence.
A divergence leads to a rally, while a convergence leads to a trend.
The stock saw a 43.39 per cent fall in 2018 and has declined another 9.49 per cent this year. The stock touched a 52-week high of Rs 1,418 and a 52-week low of Rs 521 on March 5 and October 26, 2018, respectively.
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BEML posted a standalone profit of Rs 44.70 crore for the quarter ended December 31 against a profit of Rs 16.69 crore reported for the year ago period. The company's Ebitda jumped 75.81 per cent to Rs 80.45 crore from Rs 45.76 crore on a yearly basis.
The scrip hovered at Rs 828.70, up 1.35 per cent, around 10:24 am while the benchmark BSE Sensex was up 0.21 per cent at 35,946.80. The stock opened at Rs 828.80 on BSE against its previous closing of Rs 817.65.
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