Indian benchmark indices settled sharply higher on Monday on the back of positive domestic and global cues including trade deal developments, optimistic Q2 earnings and positive inflation data from the US. BSE Sensex gained 566.96 points, or 0.67 per cent, to settle at 84,778.84, while NSE’s Nifty50 soared 170.90 points, or 0.66 per cent, to close at 25,966.05 for the day.
Select buzzing PSU stocks including Bharat Heavy Electricals (BHEL), Bank of Baroda & BEML are likely to remain under the spotlight of traders for the session today. Here is what KKunal V Parar, Vice-President of Technical Research and Algo at Choice Broking has to say about these stocks ahead of Tuesday’s trading session:
BEML | Buy above Rs 4,650 | Target Price: Rs 4,950-5,450 | Stop Loss: Rs 4,250
BEML is trading above its 100-DMA on the daily charts, indicating an overall positive trend in the counter. However, the stock has been consolidating in a range-bound zone for the past several sessions, showing no clear directional bias. It faces strong resistance near the upper band of a symmetrical triangle formation, suggesting that the upside remains capped for now. The daily RSI is currently at 56.45, trending above the 50 mark, which reflects underlying bullish momentum in the stock. Considering the overall technical setup, a decisive breakout above Rs 4,650 will be crucial. If the stock sustains above this level, we may witness a strong upside towards Rs 4,950-5,450, while a strict stop-loss should be placed at Rs 4,250.
Bank of Baroda | Buy | Target Price: Rs 284-301 | Stop Loss: Rs 259
Bank of Baroda is trading above its 100-DMA on the daily charts, indicating a strong positive trend in the counter. The stock has already given a breakout above the upper band of its triangle formation, suggesting a continued upward momentum. The stock is trading near its all-time high with above-average volumes, reflecting strong buying interest and positive sentiment. The weekly RSI is currently at 67.50, trending above the 50 mark, which further confirms the bullish strength in the counter. Considering the overall technical setup, we expect a potential upside move towards Rs 284-301, while a strict stop-loss should be maintained at Rs 259.
Bharat Heavy Electricals | Buy above Rs 245 | Target Price: Rs 258-280 | Stop Loss: Rs 228
BHEL is trading below its 100-DMA on the daily charts, which raises some caution regarding the strength of the ongoing uptrend. The stock has been moving in a range-bound manner over the past several sessions, indicating a lack of clear directional momentum. It is currently trading within a symmetrical triangle formation, suggesting that a decisive breakout on either side will determine the next major move. Considering the overall technical setup, a sustained breakout above Rs 245 will be crucial. If the stock manages to hold above this level, we may see a strong upside move towards Rs 258-280, with a strict stop-loss placed at Rs 228.