Bharat Bijlee Limited (BBL) in a upward move

Bharat Bijlee Limited (BBL) daily chart.

     BBL cmp is 860. As shown in this daily chat of Bharat Bijlee Limited, share price of bbl is slowly but steadily moving up in a upward moving channel since year 2014. From year 2010 to 2014 it was in consolidation phase. After Modi govt forming it gave upward breakout.

     Now, just before 5 days, price touched channel support line at 813 mark. Around this price mark, there are 3 supports. (1) First is from channel support line. (2) Second is from bollinger band support line. (3) Third is from prior low support.

     As expected bbl share price took support from these support marks & move upward. Today it cross middle of the bollinger band, which is moving avg line shown in red color. This indicates that share price enter in to bullish phase. This is a rule of using bollinger band. 

     Next resistance is placed at 890, which is prior high. It is very natural resistance. It is shown as R1. Share price can take some resistance there. But looking at the structure of the chart and price maintains itself above middle line of bollinger band, it can cross mentioned R1 in 1 or 2 attempts. 

     Then only resistance is channel resistance line. As it is upward moving channel, resistance is moving upward and upward with the each day is passing. So the tgt is moving up and up only.

After Modi won in UP election with Goa & Manipur, there is good bullishness in Indian markets. With the help of this bullishness BBL can cross Rs 1000 mark within next 3 to 4 months.

     Fundamentals of this company are also good. It is benefited from Uday Scheme largely. Its main business segments are Transformers, Projects, Electric Motors, Elevator Systems and Drives & Automation. BBL also undertakes commissioning of projects under which it designs, commissions high tension electrical switch yards and distribution. 

     BBL has clients such as Gujarat Ambuja Cement, Grasim ind, India Rayon Ind, J.P. Rewa Ind, DLF Cements, ICL Sugars, J.K.Sugar, Dwarikesh Sugar Ind, Mahindra & Mahindra, Airport Authority of India. BBL gets repeat orders from these big clients regularly. 

     BBL changed its strategy and as a result focus on production in spite of risky projects. Result is that, it achieved the highest production of transformers in 2005-16 in its history.

     Conclusion is that,' worst is over for BBL & one can think to buy shares for the tgt above Rs 1000 mark in 3 to 5 months time frame.

Update 1, 5th April 2017,

All targets achieved in Bharat Bijlee Limited. CMP is 1004. Book full profits and exit the trade. Call was given on 17th Mar 2017, when the price was 860 around. We have nearly 150 points profit in hand. Jay Shriram.