Sector on Radar–PSE Stocks – Powergrid,NTPC,Coal India,NMDC,ONGC, BPCL,HPCL.

This has been one of the most hated sector and rightfully so given the terrible price performance over years and decades.

Every time the trend seems to be changing the momentum fizzles out.

So why are we looking at it ?

  • The Sectoral Index has been knocking at the same resistance a few times and is close to a breakout.
  • The Risk-Reward is great.

Very recently we looked at Metals and how the rally has surprised everyone.

Not as convinced on PSE but the trade is on given the risk-reward. So will look out for a follow up in the names.

NIFTY PSE INDEX

PSE Nifty

  • 2600-2650 a major resistance.
  • Trending up and sustaining above the lower trendline supports.

Top Constituents

Nifty PSE Constituents

NIFTY CPSE

Nifty CPSE

  • The Big resistance at 1500-1530.

Nifty PSE Constituents

Technical Charts for the Top Names

PowerGrid

Power Grid Major Breakout

  • 182-183 a major resistance.
  • The 180 mark has been a cluster zone of problems since a long time.
  • Pre-emptive trade with a stop at 170.

NTPC Limited

NTPC

  • A good base at 82-85.
  • Dips can be a risk-reward entry.
  • Stops at 85. Major momentum above 100-105

Coal India

Coal India major

  • Good base at 125-130.
  • Volumes in last 2-3 days.
  • Sustaining 140 would be further confirmation.

NMDC

NMDC b

  • Trending well after the breakout at 86-88. ( Disclosure – Recommended in Technical Traders Club )
  • Further momentum above 95-97.

ONGC

ONGC

  • Major confirmation above 90-95.
  • Too early to confirm a trend change but risk-reward is good.

BPCL

BPCL

  • Retesting the recent breakout.
  • Positive till it holds above the 370 mark.
  • A move above 435-440 would be a confirmation of momentum.

HPCL

HPCL b

  • Very close to the support of 200.
  • Reversal on sustaining 225-230. Risk reward bet.

Conclusion

  • The PSE and CPSE index is very close to a resistance and a breakout beyond that would be a confirmation of a trend change to upside.
  • The trade is to either pre-empt with a very small position and a strict stoploss. Add whenever the price confirms and shift stoplosses higher.
  • The Breakout if happens has a huge reward given the terrible underperformance of the sector.
  • The Risk-Reward is good. Price action in coming days would confirm if the breakout does take place or not.

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1 Comment

  1. Viral Gala
    August 21, 2020

    ..

    Reply

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