Multibagger defence stock hits record high, overbought on charts; here are fresh price targets

Shares of Bharat Electronics Ltd (BEL) are on a bull run. The multibagger defence stock hit its record high for the second straight session on Tuesday amid weakness in the broader market. BEL stock reached a record high of  Rs 407.30 in the current session. The multibagger stock gained 2.56% to a peak of Rs 404.40 in the previous session on BSE. 

Market cap of the firm climbed to Rs 2.97 lakh crore. BEL stock has clocked multibagger returns of 224% in two years and 419.31% in three years. 

In terms of technicals, the relative strength index (RSI) of BEL stock stands at 74.3, signaling it's is trading in the overbought zone. BEL shares are trading higher than the  5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day  and 200 day moving averages. 

Om Mehra, Technical Research Analyst, SAMCO Securities  said, "Bharat Electronics Ltd has shown strong upward momentum in recent weeks, supported by sustained higher highs and a well-defined uptrend. The stock closed at Rs 403.85, up 2.45% for the day, and closed above Rs 400, the crucial psychological mark. The stock holds above the 9 and 20-day SMAs. A move beyond Rs 410 could invite fresh momentum, potentially propelling the price toward the 2.618 Fibonacci extension level near Rs 435-Rs 440."

"However, short-term caution is warranted as the daily RSI stands elevated at 74, entering overbought territory. The RSI has also shown minor negative divergence on recent peaks, hinting at reduced strength in upside continuation without further consolidation. On the downside, immediate support is seen at Rs 388, aligned with the short-term moving average. A breakdown below Rs 380 would weaken the structure and may trigger a mean-reversion move towards Rs 360–Rs 365.

The MACD remains in the positive zone, though with a flat histogram, suggesting the possibility of range-bound action if fresh breakout triggers are absent. One should remain cautious below Rs 380, while a decisive close above Rs 410 can unlock the next leg of the rally toward Rs 435-Rs 440," added Mehra. 

Ravi Singh, SVP - Retail Research, Religare Broking said, "BEL has exhibited strong bullish momentum, forming a pattern of higher highs and higher lows on the daily chart. The stock prices gained more than 4% in the last two previous days and marked an all-time high of 407 on June 17, 2025. Currently, prices are trading above the key moving averages of the 20-day and 50-day EMAs, accompanied by a surge in trading volume, which indicates a sustained bullish uptrend. The daily RSI is near 74, while the 14-day ATR stands at 10, reflecting strong momentum and volatility in prices.

In the near term, the price is expected to enter a consolidation phase, likely driven by profit booking at higher levels, therefore investors are advised to adopt a “buy on dip” approach and consider building long positions near the immediate support zone of Rs 380–385, which aligns with the 20-day EMA. The upside potential targets are Rs 425 and then Rs 440 in the upcoming sessions. To protect against downside risk, a strict stop-loss should be placed below Rs 350."

Sebi registered independent analyst Abhijeet said, "BEL is bullish on the Daily charts but also  overbought with next resistance at  Rs 410. Investors should be booking profits as a Daily close below support of Rs 394 could lead to a target of Rs 364 in the near term."