Chart Check: Bharat Forge hits fresh record high in December; should you buy or book profits?

Bharat Forge, part of the casting and forging industry, hit a fresh record high on Thursday but failed to hold on to the momentum but technical indicators suggest that the upside is still intact.

Short-term traders can look to buy the stock now or on dips for a possible target towards Rs 975, suggest experts.

The stock hit a fresh high of Rs 919 on 15 December 2022, but failed to hold on to the momentum amid muted global cues.

The stock has risen more than 7% in a week and nearly 16% in the past 3 months.

Bharat Forge stock price recently gave a breakout from a cup and handle pattern on the weekly scale and is sustaining above the same. It recorded a strong bullish candle last week which is a positive sign for the bulls.

In terms of price action, the stock price is trading above most of the crucial short and long term moving averages such as 5,10,30,50,100 and 200-DMA.


The Relative Strength Index (RSI) is placed at 68.6. RSI below 30 is considered oversold and above 70 is considered overbought, Trendlyne data showed. MACD is above its center and signal line, this is a bullish indicator.

“The stock has given a breakout of the Cup and Handle pattern on the weekly scale which is a positive price pattern, and it has retested the same to start the fresh move in life high territory,” Arpit Beriwal, Analyst, Equity Derivatives and Technicals, MOFSL, said.

“It has formed a strong bullish candle on a weekly scale which indicates fresh buying interest which will take the stock to higher zones. It is also forming higher highs – higher lows on daily scale and holding well above its 20 DEMA as supports are gradually higher,” he said.

Relative Strength Index (RSI) is near 68 zones on a weekly scale which suggests positive momentum is likely to continue going ahead.

“Overall, we are seeing good buying interest is seen in Auto ancillary space and stock is expected to scale to new lifetime highs,” highlights Beriwal.

“Thus looking at the overall chart structure on a weekly scale we expect the stock to move upwards towards Rs 975 zone in the next 3-4 weeks and keep a stop loss below Rs 870 level on a closing basis,” he recommends.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times.)