BHEL Shares: SEBI Analyst Flags Relief Rally Potential Despite Bearish Trend

Bharat Heavy Electricals (BHEL) shares have declined nearly 10% in the last month. Its short-term price action has shown volatility due to weak quarterly results. However, technical charts now indicate a potential for a short-term reversal. 

SEBI-registered analyst Deepak Pal noted that BHEL stock is trading at ₹212.20 after a recent downtrend, showing a slight pullback. Its price remains below short-term (20-day EMA) and long-term (200 DMA), indicating a bearish trend. 

Other technical indicators such as the Parabolic SAR shows bearish sentiment, while the Moving Average Convergence Divergence (MACD) is negative, showing weakness but potential for short-term reversal. 

The Relative Strength Index (RSI) for BHEL stands at 33.69, nearing oversold zone, which suggests that a short-term bounce is likely. Pal said that while the overall trend remains bearish in the short-term, oversold conditions could trigger a relief rally.

What's Working For BHEL?

Order inflows from thermal, nuclear, and renewable projects is expected to support revenue. Additionally, ongoing execution of NTPC & state power projects to provide stability in the second half of FY26. 

On the macro level, India's power sector is undergoing strong capex momentum with rising demand. And the government's“Atmanirbhar Bharat” & “Make in India” push is favorable for BHEL. 

Pal believes that renewable energy and defense indigenization could open new revenue streams for the company. However, he advised keeping an eye on global commodity price fluctuations (steel, copper), which may affect margins. 

Triggers To Watch

Investors will now focus on Q2 FY26 results due in October 2025 for movement in margins and new order inflows. Any increased spending on infra and energy projects, new PSU funding or renewable push could lift sentiment, according to Pal. 

What Is The Retail Mood?

Data on Stocktwits shows that retail sentiment turned 'bearish' last month on this counter. 

BHEL shares have declined 7% year-to-date (YTD). 

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