Bharat Forge shares at Rs 1,420? Likely in 8-9 weeks, says this stock broker

Canara Bank Securities in a technical note on Bharat Forge said the stock has potential to hit Rs 1,420 level in the next 8-9 weeks. It advised traders to buy the stock, keeping a stop loss at Rs 1,235 on a closing basis. 

The brokerage said Bharat Forge has broken out from a falling trendline resistance after a prolonged downtrend and healthy retracement, indicating a potential trend reversal and start of bullish momentum.

Technical indicators further support this optimistic outlook. Bharat Forge's Relative Strength Index (RSI) is at 58.70, close to the crucial 60-level. A breach above this level would confirm strong bullish sentiment, as suggested by the brokerage. Additionally, "a positive MACD crossover near the zero line suggests the initiation of a new uptrend," Canara Bank Securities noted. 

Moreover, volume activity is incrementally increasing, lending further credence to the breakout and the anticipated bullish move. Canara Bank Securities recommended buying the stock at Rs 1,235, targeting a short-term range of Rs 1,333–1,420, with a stop-loss set at Rs 1,112 on a closing basis. 

"A positive MACD crossover near the zero line suggests the initiation of a new uptrend. Volume activity is gradually increasing, supporting the breakout and adding credibility to the bullish move. Buy at Rs 1,235 for a short-term target of Rs 1,333–1,420, with a stop-loss at Rs 1,112 on a closing basis," Canara Bank Securities said.

The stock has traded in a wide range of Rs 919.10-1,826.20 in the past one year.  

Bharat Forge operates in several segments such as Forgings, Defence, and others, addressing both domestic and international markets. Bharat Forge's Defence segment produces and sells products which have an application in defense related activities. Forged components used in defense related activities and products are included as a part of the Forgings segment. Others segment primarily includes various initiatives which the company is carrying out other than forging and defense related activities. 

Bharat Forge caters to various industry needs through its diverse portfolio, thereby maintaining its competitive edge in the market. The company's segments contribute to its robust performance, supporting both automotive and industrial sectors with forged products, as well as defence-related applications.