Bajel Projects shares surge over 12% - What's behind the stock rally? Can it rise further? Experts take
Bajel Projects shares surged over 12% in intraday trade on 27 October. (an AI-generated image for representational purposes)
Bajel Projects shares surged over 12% in intraday trade on Tuesday, 27 October, a day after the company said it bagged an order worth over ₹200 crore for Mumbai’s critical 400 kV GIS infrastructure. Bajel Projects' share price opened at ₹171.90 against its previous close of ₹156.15 and jumped 12.3% to an intraday high of ₹175.30.
Why is Bajel Projects share price rising?
The stock rose after the company announced on 26 October that it had received an order from Tata Power Company worth approximately ₹200 crore for the engineering, procurement and construction (EPC) of 400 kV gas-insulated substations (GIS) at Dharavi and Ghatkopar in Mumbai.
Bajel Projects is a leading EPC and manufacturing solutions company with a strong domestic and international presence across the power transmission and new energies sectors.
In a separate exchange filing, the company said that Lakadia A Power Transmission Limited had issued multiple letters of award (LOAs) to Bajel towards the EPC work for a key transmission project in Gujarat. The combined value of these LOAs is ₹1,500 crore.
Can the stock rise further?
According to Aditya Thukral, founder and analyst at AT Research and Risk Managers, Bajel Projects has been moving in a corrective structure and is in the last stages of its corrective phase; however, this could still extend towards the previous swing lows of ₹135.
Thukral underscored that the stock is in a downtrend with the formation of lower highs and lower lows, and every rise towards resistance is an exit opportunity for now.
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Bajel Projects technical chart(AT Research and Risk Managers)
"The stock price is trading with negative crossovers between its major EMAs and points towards a downtrend. If this has to change, the stock price would spend some time around current levels and form a base in order to turn the price trend bullish," said Thukral.
"Every rise is an exit opportunity; however, if the stock spends some weeks around current levels and forms a base, the direction could change to upside for the stock. The important resistance zone is around ₹172 to ₹177," said Thukral.
Vipin Kumar, AVP-Research at Globe Capital Market, pointed out that Bajel Projects has been witnessing volatile swings in a wide range of ₹135- ₹215. The volume distribution is the weakest part of the chart.
"A decisive close above the ₹175- ₹180 zone could lead the stock towards ₹200 and higher levels in the near term. Immediate downside supports are placed around the ₹145- ₹135 range," said Kumar.