Bharat Dynamics registers a falling trendline breakout; What does it offer for traders?

BDL has soared over 8% during Friday’s trading session. 

Despite weakness in the Indian market, stock-specific action is seen across midcap and smallcap stocks. The shares of Bharat Dynamics Limited (BDL) have jumped over 8% amid strong buying interest and registered a strong breakout from its falling trendline. Interestingly, the volume has turned out to be above average and greater than the 30-day and 50-day average volume. With this, it has hit a fresh 52-week high of Rs 948 on NSE. The defence-sector stock has been a proven multibagger, as it has soared nearly 150% this year. Moreover, it has also jumped 20% in the past three months and has outperformed most of its peers during this period. 

Along with its positive price structure, the technical parameters suggest strong strength in the stock. All its key moving averages are in an uptrend. The stock is currently 13% above its 20-DMA and nearly 50% above its 200-DMA. Meanwhile, the 14-period daily RSI (74.78) is already in the super bullish zone and displays strong strength. The uptrending ADX (17.75) displays strong trend strength, which is backed by the OBV, which shows rising buying interest in the stock. The MACD histogram is rising steadily and demonstrates upside potential. The Elder Impulse system has indicated a fresh buy. Also, the KST and TSI indicators are bullish. In a nutshell, the stock is technically strong and is expected to trade higher in upcoming trading sessions. 

Meanwhile, the FIIs have been consistently increasing their stake in this company. Considering this positive picture, backed by huge volume and bullish technical parameters, it is likely to attract swing traders and momentum traders. 

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Bharat Dynamics Limited is one of India`s largest manufacturer of ammunitions and missile systems along with drone technology. With the market capitalisation of about Rs 17400 crore, it is one of the strong growing company of the booming sector.