Bharat Electronics (BEL) share price gained over 3 percent in the morning session on November 20 after Jefferies maintained its "buy" call on the stock with a target of Rs 130 per share.

                                 



The research firm is of the view that the impact of lowered margin on nominated projects began in FY20, adding that the operational leverage and cost-saving indigenization benefits would offset the impact.

Jefferies said that the margin at 20 percent should be sustainable with strong visibility in missile system orders for five-ten years. Focus remains on the working capital, it said.

The stock was trading at Rs 106.55, up Rs 3.45, or 3.35 percent. It has touched an intraday high of Rs 107.95 and an intraday low of Rs 104.50.

Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities, said the stock had been soaring rapidly. On November 19, despite weak market conditions, it maintained strong momentum throughout the day.

The medium-term chart formation is still on the negative side and would create doubt in the traders' minds. The stock is heading towards its important resistance level of Rs 112. The short-term texture is positive, but Rs 112 should act as important resistance for the BEL.

On the flip side, a close below Rs 100 may trigger further weakness up to Rs 92 support level.

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