Technical Analysis of Indian Equities by Nooresh

Time to look into PSUs

 

In the last many months we have seen lot of criticisms on PSU companies and the government actions. Given the fact there is not a problem with the inherent value in lot of PSUs the issue is more with the governments inaction and bad policies.

 

If at all government would start functioning or come out with reforms in PSUs we may actually see some of them outperforming markets in a big way.

 

HPCL,BPCL, ONGC, SJVN, NHPC, NTPC are some names which look interesting. Have been avoiding PSUs for many years now but just get a gut feel for the next couple of years.

 

Would like comments from the readers on this. For now have no long bias apart from HPCL and BPCL which i like.

 

Happy Investing,

 

Nooresh

Article by Nooresh Merani

Nooresh has written 2555 articles.

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{ 13 comments… add one }
  • Nitin Karwa July 16, 2012, 12:20

    Like NMDC as a stock in PSU> It benefits hugely from the US $ depreciation considering its exporting a good chunk of its production. Relatively insulated business.

    Reply
    • Nooresh July 17, 2012, 10:52

      Yes NMDC and also GMDC look very good

      Reply
  • meghraj mane July 16, 2012, 14:55

    WHY NOT DAILY MOVING PSUS LIKE
    STC HINDCOPPER HMT ITI

    Reply
    • Nooresh July 17, 2012, 10:52

      Well those are purely gambles 🙂

      Reply
  • Gandhe srinivas July 16, 2012, 21:23

    Sir

    Have 3 lots of HPCL @352

    Please suggest

    Reply
    • Nooresh July 17, 2012, 10:52

      Stoploss hit as a trader exit

      Reply
  • Manjunath A Kopparada July 16, 2012, 23:05

    Very good contra view. After seeing your blog I checked all the stocks quoted by you and found ONGC making cup and handle for target of 350-360 yet to breakout 295 with volume. As for as BPCL and HPCL are concerned they are already on uptrend.

    NTPC may face lot of resistance at 164 around 200 DEMA.

    NHPC has got better pattern and also looks good risk reward. We can buy this around 18 with SL at 17 for target of 20 and 24.

    Thanks for guiding us with out of the box thinking.

    Reply
    • Nooresh July 17, 2012, 10:50

      Yes watching a lot of PSU for a little longer term view.

      Reply
  • Sandeep July 16, 2012, 23:15

    Hi Nooresh,

    I am holding RIL @ 950 from quite a long time(approx 25% loss), but can’t see any upside. Please suggest what should I do. Book losses and enter into any PSU stocks?
    I am holding NTPC @175.

    Regards,
    Sandeep

    Reply
    • Nooresh July 17, 2012, 10:50

      Will suggest you to average at 680-720 and exit on rise.

      Reply
  • rajamani July 17, 2012, 19:27

    power grid is my choice

    Reply
  • george July 22, 2012, 00:56

    What about ioc and mrpl?How come these are missing on that list?

    Reply
    • Nooresh July 23, 2012, 11:41

      Not tracking them closely.Looking into chennai petro.

      Reply

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