How to trade Modi stocks ahead of LS election results? Complete guide here

The so-called 'Modi-stocks' have rallied up to 50 per cent in the last six months, suggests a CLSA report. What's in store ahead; here's what the charts suggest.

In a recent report by CLSA, the foreign brokerage, said 'Modi-stocks' a term coined by them have outperformed the NSE Nifty 50 in the last stocks. As per the report, the average returns of ‘Modi-stocks’ have been 50 per cent since December 2023 as against a 14 per cent rise in the Nifty.

The so-called 'Modi-stocks' by CLSA, include a combination of PSU and non-PSU stocks, with the likes of Reliance Industries, Bharti Airtel, Larsen & Toubro, ONGC, SBI and NHPC to name a few. READ REPORT

Meanwhile, here's a trading guide on select 'Modi-stocks' based on the existing technical chart analysis.

Reliance Industries (RIL)

Last close: Rs 2,850

Bias: Negative

Support: Rs 2,814; Rs 2,766

Resistance: Rs 2,902

Reliance Industries stock has more-than retraced over 61.8 per cent of its recent rally, from a low of Rs 2,768 on May 13 to a high of Rs 2,984 on May 23. In the process, the stock is once again seen trading below its key short-term moving averages. CLICK HERE FOR THE CHART

The price-to-moving averages action remains negative on the daily scale, with key momentum oscillators also in favour of the bears on the weekly scale. Thus, RIL stock finds it difficult to sustain at higher levels. 

In order to negate the existing downtrend, RIL needs to trade consistently above its 50-DMA (Daily Moving Average), which stands at Rs 2,902. Following, which the stock can spurt to Rs 2,950.

On the flip side break and sustained trade below Rs 2,814, its super trend line support, can push the stock towards Rs 2,766. The major support for the RIL stock, its 200-DMA, stands at Rs 2,645.

Bharti Airtel

Last close: Rs 1,377

Bias: Positive

Support: Rs 1,330; Rs 1,312; Rs 1,283

Resistance: Rs 1,400

The chart structure of Bharti Airtel stock is extremely strong, with the stock forming higher highs and higher lows, both on the daily and weekly scale, for nearly two years now. Even as the stock seems to be trading near-about overbought zone, the momentum oscillators remain in favour of the bulls.

The daily chart suggests positive bias to prevail, in the short-term, as long as the stock holds above its 20-DMA at Rs 1,330; below which next support levels are placed at Rs 1,312 and Rs 1,283. CLICK HERE FOR THE CHART

On the upside, the stock is trading in uncharted territory. Sustained trade above Rs 1,400 can lead to a sharp rally. 

Indraprastha Gas (IGL)

Last close: Rs 457

Bias: Range-bound

Likely range: Rs 430 - Rs 480

Support: Rs 448; Rs 440

Resistance: Rs 468

Indraprastha Gas stock seems to have entered a sideways trading range, post its sharp rally in late March early April period. The daily chart suggests, that has thereafter found support around its 100-DMA on a consistent basis, and face resistance around the super trend. This suggests a likely trading range of Rs 430 - Rs 480 for the IGL stock. CLICK HERE FOR THE CHART

In the interim, the stock is likely to seek support around Rs 448 - Rs 440 levels, wherein the other key moving averages hover. Near resistance can be expected around Rs 468. 

Mahanagar Gas

Last close: Rs 1,281

Bias: Marginally negative

Support: Rs 1,256; Rs 1,227; Rs 1,205

Resistance: Rs 1,319; Rs 1,380

Mahanagar Gas seems to be consolidating, with a slightly negative bias, on the daily scale. The stock did not even participate in the mid-May rally. The weekly chart shows presence of strong support at Rs 1,256 - its super trend line; followed by Rs 1,225 and Rs 1,204 - the lower end of the Bollinger Band and 50-WMA (Weekly Moving Average).

Break and sustained trade below these levels, can trigger sharp fall towards Rs 1,070-odd levels. 

On the upside, near hurdle for the Mahanagar Gas stock is seen at Rs 1,319, followed by presence of multiple resistances around Rs 1,380 levels. CLICK HERE FOR THE CHART

Power Finance Corporation (PFC)

Last close: Rs 500

Bias: Positive

Support: Rs 492; Rs 460

Resistance: Rs 545

Power Finance stock is trading with a positive bias on the daily and weekly scale. The weekly chart reveals that the bias is likely to remain bullish as long as the stock holds above Rs 492. Key momentum oscillators too are very strong, thus suggesting likelihood of the positive trend to continue.

On the upside, the stock is likely to rally to Rs 582 levels, with interim resistance seen at Rs 545, the yearly Fibonacci chart suggests. 

Meanwhile, in case, support at Rs 492 gets violated, the stock may then seek support around its 20-DMA at Rs 460. CLICK HERE FOR THE CHART

ONGC

Last close: Rs 267

Bias: Critically poised

Support: Rs 268; Rs 262

Resistance: Rs 275

ONGC stock is presently trading at its crucial 100-DMA support, which stands at Rs 264-odd levels. This also coincides with its mid-May low around Rs 262 levels. As long as the stock manages to sustain above 100-DMA on a daily closing basis, the stock can attempt a pullback to higher levels.

The daily chart suggests potential upside to Rs 286 levels, with interim resistance around at Rs 275. CLICK HERE FOR THE CHART

Having said that, a weekly close, below Rs 268, can be a major cause of concern for the stock; as it opens the door for a sustained fall to Rs 239-odd levels.