The share price of Bharat Heavy Electricals (BHEL) witnessed a robust rally, rising by nearly 6% to hit a new 52-week high of ₹205 on the NSE on Monday. This increase was followed by a media report revealing that the state engineering department had secured the position of the highest bidder for a large ₹19,422 crore turnkey contract. The contract involves the construction of a thermal power plant for NLC India in Talabira, Odisha.
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According to a Hindu Business Line report, BHEL emerged as the highest bidder, beating L&T-MHI, after the opening of financial bids on Friday.
BHEL is set to build three supercritical units, each with a capacity of 800 MW, for NLC India at Talabira, the report said. The report suggests that NLC has included a fourth 800 MW unit in the project, with the EPC tender originally covering the initial three units.
The report does not clarify whether a separate bid will be issued for the fourth unit.
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The rise in share price was accompanied by robust trading volumes, with over Rs 6 crore traded on the NSE by around 1.30 pm, amounting to a trade value of ₹1,220.57 crores.
The current price movement has pushed the stock into an overbought zone, as indicated by moving indicators RSI and MFI, standing at 70.6 and 76.4, respectively, according to Trendlyne. Numbers above 70 are usually considered overbought, while those below 30 suggest oversold conditions.
The stock has given impressive returns of over 150% over the past year, outperforming the Nifty, which registered a relatively modest gain of 19% over the same period. BHEL is currently trading above its 50-day and 200-day simple moving averages (SMAs).
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This high-yielding stock is also actively traded in the Futures and Options (F&O) segment. Notably, BHEL exhibits relatively low volatility, boasting a 1-year beta of 0.2, as reported by Trendlyne. On Friday, the Market Wide Position Limit (MWPL) for BHEL reached 81.7%, and Trendlyne reported Open Interest (OI) of 103.9 million, marking a 4% increase from the previous session.
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Published: 01 Jan 2024, 17:29 IST