New Delhi: The stock markets opened on a positive note on Friday and gained significantly in the first hour of trading. Then it started consolidating in a small range around the high of the day. During this, the shares of defense sectors attracted everyone’s attention. One of these stocks rallied over 4 per cent in early trade and registered a technical breakout from a continuation pattern on the daily time frame. This stock is Bharat Dynamics Limited. This central government company manufactures guided missiles and defense equipment. It manufactures surface-to-air missiles, air defense systems, heavyweight torpedoes, air-to-air missiles and other such equipment. This company was established on July 16, 1970 and is headquartered in Hyderabad. It is a debt free company and has a dividend payout ratio of 37.6%. The stock is in the consolidation range of Rs 1026 to Rs 800. Since October 2022, it has been forming lower highs and equal lows on the daily timeframe based on the 200 day moving average. It has crossed the previous swing high which the bears had protected for the past five months. It reached Rs 1,013 during the day, which is just short of its lifetime high of Rs 1,026.9. If it closes near the high of the day, it will confirm the breakout. Its volume has increased on a month-on-month basis for the last two months. All its short-term leading and lagging indicators are in the bullish zone and the 14-day RSI (65) has surpassed the previous multiple swing high on the daily time frame. This is indicating strong momentum in it. Looking at these factors, it is expected to remain in focus in the coming sessions. The investors and traders looking for opportunities in defense sector can add this stock to their watchlist.
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