NTPC, IRCTC, Coal India: How to trade PSU stocks ahead of Budget 2022?

With the exception of SAIL, other PSU stocks could breakout upon any positive news in the sector

The Budget 2022 may shower pro-policies for the public sector units (PSUs) – that’s what traders and investors expect. The stock market may not oblige any subdued commentary for public unit related schemes. While the overall current scenario suggests an indecisive market, any positive developments in Budget 2022 could push several stocks higher resulting in a breakout.  
 
Bharat Heavy Electricals Ltd (BHEL)
Outlook: Indecisive – trading in a band

The shares of Bharat Heavy Electrical Ltd failed to sustain above the 200-day moving average (DMA) and struggled to break through the resistance of Rs 65. The current weakness has support of Rs 55 levels and if it holds ground above the same, then it could see a revival in the trend. The present scenario indicates indecisiveness. While the technical indicator, Moving Average Convergence Divergence (MACD) violated the zero line downward, the stock price action does not reflect any clear direction.  CLICK HERE FOR THE CHART

 

Coal India Ltd (COALINDIA)
Likely target: Rs 170 and Rs 180 levels. 
Upside potential: 5% to 11% 

The recent trend has seen a correction of over 25 per cent. The 200-DMA currently placed at Rs 143.50 levels has held this downside and the stock succeeded to show recovery. Then, it gave a breakout above Rs 152 and began to continue the upward journey. On a bigger outlook, the 200-DMA plays a vital role and as long as this support is protected, the bullish bias may regain momentum back to Rs 170 and Rs 180 levels.  CLICK HERE FOR THE CHART

Indian Railway Catering and Tourism Corporation (IRCTC)
Outlook: Trading in a range

Shares of IRCTC are trading in a tight range of Rs 950 to Rs 750 levels. Only a breakout of this range would provide a clear direction of the next move. The volumes have also remained subdued, indicating no clear outlook. The breakout may see a rally that could fetch Rs 250- 350 in the respective direction.  CLICK HERE FOR THE CHART
 
Steel Authority of India (SAIL)
Likely target: Rs 90 and Rs 85
Downside potential: 8% and 13%

The stock is trading well below the 200-DMA currently placed at Rs 112 level, and gradually drifting lower. The trend is weak and any aggression on volumes may push the stock on further downward spiral. The immediate resistance for the stock comes at Rs 108 and weakness may drive the stock towards Rs 90 and Rs 85. CLICK HERE FOR THE CHART

NTPC Ltd (NTPC)
Likely target: Rs 150 and Rs 160
Upside potential: 5% to 11%

Shares of NTPC shares seem to be withholding the selling pressure range of Rs 143 – Rs 140 levels. This sentiment may result in a breakout that would not only cross Rs 150, the recent reversal mark, but can even stretch in the direction of Rs 160 levels.  The support is positioned at Rs 135 level. Both the technical indicators, Relative Strength Index (RSI) and MACD are showing positive crossover with strength and momentum in favour of the bulls, as per the daily chart. CLICK HERE FOR THE CHART